Cotton Hits Fresh Decade High Fueled by Mill Short Covering
- Large short positions held by mills must be closed before July
- Prices could reach $1.35/lb or up on short covering: Plexus
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Cotton futures touched a fresh decade high Monday, with a global deficit of the fiber squeezing mills holding huge short positions.
The March contract climbed as much as 3.2% to $1.2771 a pound in New York, the highest for a most-active contract since June 2011. Its rare premium over May futures has risen 58% this year and is 275 times more than a year ago, showing buyers’ urgency to buy for nearby delivery.