ICE cotton futures jumped as much as 5.6% to hit a more than one week high on Monday, helped by gains in the stock markets as coronavirus-related deaths and new cases slowed in some of the world’s most affected countries.
The cotton contract for May settled up 2.07 cent, or 4.06 %, at 53.05 cents per lb. The contract touched 53.86 cents per lb earlier in the session, a peak since March 26.
Cotton is up with the stocks, even as the natural fiber market remains oversold, said Louis Rose, Director of Research and Analytics at Tennessee-based Rose Commodity Group. Cotton prices dropped to their lowest levels since April 2009 last week and slid about 17% in March as virus fears dragged on the global economy and demand for the fiber.
“World agricultural supply and demand estimates could affect prices, probably to the downside if USDA reduced export projection for U.S … It will probably be a while before we trade north of 60.00,” Rose added.
