Cotton futures rose for the seventh straight session, the longest rally in almost two years, on bets that production will drop in the U.S. as demand rebounds in China. Sugar, cocoa and orange juice declined.
Cotton rose to a five-week high on optimism that U.S. lawmakers will reach a budget accord, avoiding a fiscal cliff that would hurt the economy and cut commodity use. Cocoa, sugar, coffee and orange juice gained.
Cotton prices rose, extending a rally above $2 a pound, on signs that global supplies will remain limited this year amid increased demand from China, the world’s biggest consumer. Orange juice also gained.
Wheat futures jumped the most in a week as declining world production boosts demand for supplies from the U.S., the world’s biggest exporter. Corn and soybeans for delivery after this year’s harvest rose.
Cotton topped $2 a pound for the first time ever as accelerating global growth boosted demand for garments manufactured in China, the world’s biggest fiber consumer and importer, amid shrinking supplies.