Cotton futures prices rose to their highest levels since 1995 on concern that supplies will fall short amid rising demand from Asia.
The International Cotton Advisory Committee, an intergovernmental group, said this week the average global cotton price would rise 15% in the year that began Aug. 1 from the previous year. China and India will account for most of the gain, the group said. The ratio of year-end inventories to mill use may drop to 36%, the lowest level since 1990, it said.
Cotton futures for December delivery on Thursday rose 2.08 cents, or 2.4%, to settle at 89.49 cents a pound at 2:39 p.m. on ICE Futures U.S. in New York, according to Bloomberg News. That's the highest settlement price for a most-active contract since Oct. 4, 1995.
