Cotton Surges by Exchange Limit on Concern Rain May Hurt Australian Crops

Cotton rose the most allowed by U.S. ICE by concern that wet weather could limit supplies Australia, the fourth largest exporter in the world. Orange juice also rose.
Australia Bureau of Meteorology forecast from April to June showed an "emerging risk" that the rain can erode the quality of the cotton crop and difficult to harvest starting this month, said Tracey Allen, an analyst at Rabobank Australia Ltd. in Sydney. Prices have more than doubled in the last 12 months to the growing global demand exceeded supply reduction.
"Australia is positive news for the market," said Andy Ryan, a senior consultant for risk management in FCStone Fibers and Textiles in Nashville, Tennessee. "There are some purchases by textile mills."
Cotton for May delivery increased by more than 7 cents, or 3.5 percent, to close at 2. $ 0596 per pound at 2:39 pm in New York ICE. Fiber increases the maximum for the third time in four sessions. The most-active contract rose to a record $ 2,197 on March 7.
U.S. is the largest exporter, followed by India and Uzbekistan.
The orange juice futures for May delivery rose 0.15 cents, or 0.1 percent, to $ 1.582 a pound. Earlier, the price touched $ 1,531, the lowest since 02 December.

(Source: http://www.bloomberg.com/news/2011-03-22/cotton-surges-by-exchange-limit-on-concern-rain-may-hurt-australian-crops.html)