Cotton price rises to two-week high on ICE on fear of output drop in China

Cotton prices have been see-sawing for some time now, gyrating on production news from top producing countries. On the ICE, cotton prices jumped to a two-week high on 21 November after China predicted its harvest will decline 12.3 per cent this year as an early frost adversely impacted its yields. The most-active March cotton contract on ICE Futures US gained US cent 0.58 cent, or 0.7 percent, to settle at US cents 78.14 per pound, near the contract’s 10-14-day moving averages. Pressure also came as speculators defended a net short position and on heavy liquidation of the December contract ahead of its first notice day later this week.