Cotton futures rose, snapping the longest slump in five months, as exports climbed from the U.S., the world’s top shipper.
In the three weeks ended Oct. 24, U.S. export sales of upland cotton jumped 81 percent to 612,300 running bales from a year earlier, Department of Agriculture data showed today. The agency halted reports during a 16-day government shutdown this month. A running bale weighs 500 pounds, or 227 kilograms.
"The sales were great," and they spurred the rally, Sharon Johnson, a senior market specialist at KCG Futures in Roswell, Georgia, said in an e-mail.
Cotton for December delivery rose 0.9 percent to 78.55 cents a pound at 10:57 a.m. on ICE Futures U.S. in New York. A close at that price would mark the biggest gain for a most- active contract since Sept. 27.
"Most analysts were not expecting large numbers" for exports, Louis W. Rose, the owner at Risk Analytics LLC, an industry consultant in Memphis, Tennessee, said in an e-mail.
Cotton fell in the previous nine sessions, the longest slump since late May, as the U.S. harvest progressed and inventories monitored by ICE jumped.
Yesterday, cotton touched 77.68 cents, a nine-month low. This month, the price has slumped 9.9 percent, the most since May 2012 and the biggest drop among 24 raw materials in the Standard & Poor’s GSCI Spot Index.