By admin       2016-09-22

Cotton futures surged more than 1 percent on Wednesday to the highest in nearly six weeks, on concerns that rain may be hurting the crop in United States. Rains have led to crop damage in cotton producing regions in the US Midwest and are expected to hurt the natural fiber crop in West Texas next week, meteorological firm Commodity Weather Group said in a note.The Texas crop is vulnerable to quality degradation," said Keith Brown, principal at cotton brokers Keith Brown and Co in Moultrie, Georgia. The second month December contract on ICE Futures on Tuesday broke above 70 cents for the first time in more than a month.Speculators who are long are gaining more confidence and are now buying more positions, Brown said, adding that a weaker dollar was also supporting prices. The December cotton contract on ICE Futures US settled up 0.82 cent, or 1.16 percent, at 71.62 cents per lb. It traded within a range of 70.28 and 72.1 cents a lb, a peak since August 12. The dollar index was down 0.45 percent. Weekly export sales data from the United States Department of Agriculture (USDA) are due on Thursday.

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