Cotton futures rise on increased demand, China inflation data

Cotton futures rose for the first time in three days on Tuesday, jumping to a daily high amid increased demand for U.S. supplies and after Chinese consumer prices rose less-than-expected in January.
On the ICE Futures U.S. Exchange, cotton futures for May delivery traded at USD1.8649 a pound during European afternoon trade, soaring by 2.13%.
It earlier rose to USD1.8651 a pound, only 1.5% away from an all-time high of USD1.8941 a pound it reached last Thursday.
The U.S. Department of Agriculture said in its weekly report on Monday that cotton for export inspected at U.S. ports in the week ended February 3 jumped by 26% to 720,950 bales, compared to 532,500 bales a week earlier.
The strong demand added to lingering concerns over global cotton supplies after the USDA last week lowered its forecast for global inventories to 115.3 million bales, while raising its forecast for global demand to 116.6 million. 
Meanwhile, China’s statistics bureau said earlier Tuesday that consumer prices rose 4.9% in January from a year earlier compared with a 4.6% gain in December, falling short of expectations for a 5.4% increase.
The milder-than-expected inflation figure eased concerns over further monetary tightening by Beijing that could slow demand for the fiber. 
China is the world's largest cotton consumer, while the U.S. is the world’s largest exporter of the fiber.
Global financial service provider Commerzbank said in a report late Monday, “It seems only a matter of time before the USD2.00 mark is taken. The price of cotton still only knows one direction."   
Meanwhile, wheat futures for March delivery slumped 0.85% to trade at USD8.6512 a bushel, while corn futures for March Delivery shed 0.22% to trade at USD6.9538 a bushel during European afternoon trade.

(Source: http://www.futurespros.com/news/softs-news/cotton-futures-rise-on-increased-demand,-china-inflation-data-1000007510)