Cotton makes biggest jump in 14 months

Cotton makes biggest jump in 14 months

U.S. cotton futures surged for their biggest daily percentage gain since April 2011, rallying initially with other commodities and U.S. stock markets, then pushing to their four-day high as investors covered short positions.

From Reuters:

U.S. cotton futures surged on Wednesday for their biggest daily percentage gain since April 2011, rallying initially with other commodities and U.S. stock markets, then pushing to their four-day high as investors covered short positions, brokers said.

U.S. equity markets rose as signs of urgent moves in Europe to rescue Spain's troubled banks sparked a rebound in beaten-down shares, pushing the broad S&P 500 index through a key resistance level.

In the commodities sector, metals, energy, grains and other softs markets pushed the global benchmark Thomson Reuters-Jefferies CRB index up 1.25 percent.

"Today's market is truly a rising-tide-lifts-all-boats kind of market," said Mike Stevens, an independent cotton analyst in Mandeville, Louisiana.

Commodities posted their biggest rebound in more than three months, also on growing hopes for a solution to the euro zone crisis and a stimulus measure for U.S. growth.

The CRB's biggest gain since Feb. 21 was won as a rising euro made dollar-denominated raw materials, including cotton, cheaper for users of the single currency.     

For more, see: NY cotton gains most in 14 mos, commodities rally [3]