Cotton expected to hit $2 next week

U.S. cotton futures rallied Friday to a 150-year peak on trade and speculative buying as very tight supplies were expected to push the market to the unheard of level of $2 a pounds by next week, analysts said.

From Reuters:

U.S. cotton futures rallied Friday to a 150-year peak on trade and speculative buying as very tight supplies were expected to push the market to the unheard of level of $2 a lb by next week, analysts said.

The key March cotton contract CTH1 on ICE Futures U.S. rose 6.42 cents to $1.94 which marked the highest price since the Civil War. The early low was $1.8796.

"There are no supplies available," said Lou Barbera, cotton analyst at brokerage VIP Commodities.

He said buyers, faced with a virtual dearth of physical cotton, were being forced to pay up to get some material.

Since the benchmark March cotton contract can only rise the 7-cent limit to $1.9458, attempts to hit the $2 a mark level will have to wait for next week.

"We should be well over $2 next week," said Barbera.

US cotton hits 150-year high, $2 targeted for next week

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