Cotton Production Increased By Nearly 3% Factors. Cotton Producing Areas Encountered Adverse Weather.

P cotton futures rose nearly 3% on Wednesday, due to weather problems in the world's largest cotton growing areas, heavy rainfall in the southeastern United States, and drought in Western Texas and China is expected.

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"P", Sterling Smith, a futures Commissioner in Citigroup in Chicago, said cotton futures have been trading in a narrow range for two months, and cotton prices are "like falling asleep". "It's time to wake up."

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< p > weather forecasters expect that there will be rain in the southeastern part of the United States, and the humid soil environment has become a problem.

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< p > "if the cotton planting environment is too wet, their stems will grow faster than cotton bolls.

This shows that too much rain is not a good thing. "

Smith said.

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The P cotton futures contract rose 2.64 cents, or nearly 3%, to 88.33 cents per pound in December, the ICE index.

The volume of the contract surged to 27347 from 8452 on Tuesday.

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< p > in addition, Western Dezhou will continue to be dry for the next two weeks. Dezhou is the largest cotton producing state in the United States.

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< p > > the world's largest a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > Market -- China's cotton growing areas are also facing extreme drought weather.

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< p > "comprehensive three factors" -- the US cotton is facing a reduction in production, China's cotton is also facing a reduction in production, and the cotton market price trend is slow.

This could lead to sudden sharp fluctuations in prices, "Smith added.

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India, P, the second largest cotton producer in the world, has expressed concern about cotton production and quality, because the Maharashtra state in Western China has had excessive rainfall in the past two weeks.

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< p > however, analysts are skeptical about whether cotton prices will continue to rise after the US Department of Agriculture announced its demand and supply report next Monday in August.

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< p > the US Department of agriculture estimated in July that the US cotton output is 13 million 500 thousand bales.

Some analysts have already raised the estimate for output in August, although a large proportion of cotton produced in Dezhou may not qualify.

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< p > traders pointed out that if weather changes damage cotton crops, especially in the case of the current demand for cotton processing plants in the United States, the market participants may not attach importance to Monday's USDA supply and demand report.

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