(Bloomberg) -- Cotton futures posted the highest closing price in two months after the U.S. government projected smaller global ending stockpiles, driven by rebounding consumption.
The U.S. Department of Agriculture trimmed its inventory outlook for 2021-2022 on Monday even as it raised production estimate for the U.S., the world's top shipper of the fiber. The agency said lower beginning stockpiles and rising consumption in India would mean a lower hoard.
Meanwhile, certified stockpiles at ICE Futures U.S. have continued to slip since late June, and torrential rains from Elsa earlier this month in some growing areas have left “a mixed bag” outlook for the top U.S. growers, said John Robinson, an economist at Texas A&M's AgriLife Extension in College Station.
Cotton for December delivery rose 0.3% to settle at 88.46 cents a pound in New York, a third straight gain and the highest closing price for a most-active contract since May 10. The price has surged 40% in the past year on expected deficits.
In other soft commodities, raw sugar rose for the first time in six sessions, while arabica coffee and cocoa slid.
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