By admin       2016-07-13

ICE cotton futures hit their highest levels in two years on Tuesday after the US government slashed its outlook for global inventories by the end of the 2016/2017 crop year and forecast a spike in US exports to a four-year high.ICE December cotton rose as much as 3.2 percent to 69.97 cents per lb, the highest level for the second-month contract since July 2014, immediately after the release of the US Department of Agriculture's monthly supply and demand report.Prices were up 2.3 percent at 69.36 cents a lb at 12:58 pm EST (1658 GMT).While the USDA boosted its outlook for US production, that was offset by higher exports, the report said. The agency raised its outlook for the shipments from the United States, the world's top exporter, to 11.50 million 480-lb bales, the highest level since the 2012/2013 crop year.The USDA lowered its forecast for global stocks at the end of the 2016/17 crop year, which begins in August, to 91.29 million 480-lb bales, down from its June estimate of 94.73 million and the lowest level since the 2011/12 crop year.The drop would be led by China, the world's top cotton consumer. The USDA said Chinese inventories would fall to 51.70 million bales, the lowest level since the 2012/2013 crop year and down from its June forecast of 54.70 million.ICE cotton futures jumped nearly 3 percent on Monday, touching the highest level in more than a year on technical buying after prices of the fiber broke through the key 63.50 to 66.50 cents range, amid concerns over hot and dry weather conditions across production regions.The December cotton contract on ICE Futures US settled up 1.97 cent, or 2.99 percent, at 67.78 cents per lb.

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