Cotton Rises to Two-Week High as Storms Damage Crops in Pakistan
Cotton rose to a two-week high as unusually heavy rain devastated crops in Pakistan, the fourth- largest grower.
Storms in the Sindh and Punjab regions during the past week may have damaged as much as 1.5 million bales on fields farmers have yet to harvest, said Mian Rashid Mehmood, the vice chairman of thePakistan Cotton Ginners Association. The farm ministry in June set a target to produce 15 million bales nationwide. Last year’s crop was reduced by the nation’s worst-ever flood.
“Some traders are starting to take note of excessive rains in parts of Pakistan,” Mike Stevens, an independent trader in Mandeville, Louisiana, wrote today in an e-mailed report. “While there are no predictions of a repeat of last year’s disaster, some are likely taking a ‘shoot first and ask questions later’ attitude.”
Cotton for December delivery jumped 3.97 cents, or 3.8 percent, to settle at $1.0782 a pound at 2:34 p.m. on ICE Futures U.S. in New York. Earlier, the fiber rose by the 4-cent exchange limit to $1.0785, the highest since Aug. 2.
