Cotton prices were seen trading higher as it reached a sixth straight monthly gain while the long-term drought in Texas continues. The common cotton areas from Virginia, central Mississippi, Alabama and northeast Louisiana saw about 250% normal rain in April, according to reports from MDA Weather Services. This year, prices for the commodity climbed by 11% this year.
Meanwhile in the Western region of Texas, approximately 75% of fields saw less rain this month, Drew Lerner, President and Senior Agricultural Meteorologist of World Weather, said in an interview.
Cotton for July delivery rose 0.2% higher to 94.29 cents a pound on the ICE Futures US in New York. In April prices rose 0.8% and climbed 22% within six months, the longest gaining streak since 1984.
Concerns that the US tight supplies pushed cotton to its highest in two years, settling at around 97 cents a pound in the previous month.
Cotton global demand is forecasted to increase by 2.2% from the previous year to 23.93 million tons in the season that begins from August 1, according to reports from Cotlook Ltd. Meanwhile output is expected to fall by 0.7% to 25.54 million, according to market estimates.
Farms from almost 15 state planted 13% of forecast acres in the week ending April 27, compared with the previous five-year average of 18% in the same period last year.
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