Cotton rallied to the highest price since March 2008 on the outlook for rising demand as global equities gained and the dollar dropped. Orange-juice rose to a one-week high.
Stocks gained after a report showed manufacturing in China grew at a faster-than-expected pace in August. The MSCI World Index of equities climbed as much as 2.9 percent. The dollar fell to the lowest level in almost two weeks against a basket of six competing currencies, making U.S. products more attractive to overseas buyers.
China’s manufacturing growth “might be what’s helping some of these markets and in turn helping cotton,” said Sharon Johnson, a senior analyst at First Capitol Group LLC in Atlanta. Higher equities “could be a part of what’s helping cotton, plus the dollar’s down quite a bit.”
Cotton futures for December delivery rose 1.21 cents, or 1.4 percent, to settle at 87.41 cents a pound at 2:33 p.m. on ICE Futures U.S. in New York. Earlier, the price reached 87.9 cents, the highest level for a most-active contract since March 6, 2008. The fiber advanced 9.4 percent last month, the biggest such gain since February. The commodity has jumped 16 percent this year.
China is the world’s largest consumer of cotton.
Orange-juice futures for November delivery climbed 1.2 cents, or 0.9 percent, to settle at $1.416 a pound at 2 p.m. in New York. Earlier, the price touched $1.42, the highest level for a most-active contract since Aug. 24. The price has gained 9.7 percent this year.