www.zerohedge.com BY TYLER DURDEN
Cotton futures jumped as high as 4% Monday, reaching a new decade high, as data supplied by weather forecasters say drought conditions in Texas could tighten supplies. The front-month contract in New York hit $1.41 a pound, the highest intraday level since May 2011.
Cotton futures have soared nearly 9.5% in the last three sessions. Prices are coming back in on Monday after hitting a new decade high. Prices around 0950 ET are around $1.36. The latest spike in prices has been due to drought fears in Texas and Ukraine conflict tightening supplies.
Bloomberg cited new data from weather forecaster Ajay Kedia, director at researcher Kedia Commodity, who indicated drought conditions for West Texas would pressure supplies. Texas is the largest state in terms of production; the US is the number three producer in the world.
