Cotton turns higher on grains rally, India weather

Tag : in cotton
NEW YORK -
Cotton prices jumped Friday, boosted by a rally in the grainsmarket and concerns that monsoons in India may damage cotton cropsin the world's second-largest producer.
Cotton for December delivery rose 0.64 cent on Friday to close at74.50 cents a pound on the ICE Futures US exchange.
The gains came as prices for corn, soybeans and wheat rose Fridayon concerns that recent pullbacks don't reflect the true value ofMidwest crops, which have been recovering from devastating Junefloods.
Ongoing monsoons in India have also threatened cotton crops there,raising concerns of tightened international supplies, said SharonJohnson, senior cotton analyst at First Capitol Group in Atlanta.
"Cotton planting already was running behind in India and theweather situation doesn't help things," she said.
Also boosting prices Friday was damage from Hurricane Dolly, whichdumped heavy rain over South Texas cotton crops earlier this week.

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