China's demand for cotton spurs near-record bull bet for hedge funds
As prices head for biggest monthly advance since July, hedge funds are positioned for more gains
New York
CHINA's voracious demand for cotton is sparking the fibre's best rally in six months.
Chinese buyers have committed to purchasing almost five times more American cotton than at this time last year, the US government said in a report this month. The price of the commodity is heading for its biggest monthly advance since July. Hedge funds are positioned for more gains, holding the second most bullish wager ever.
American growers, the world's top exporters, are expected to ship the most cotton this season since 2013, data from the US Department of Agriculture show. Sales growth is also being driven by purchases in Indonesia and Vietnam.
While rising demand has sparked two straight years of rallies, futures in New York are still trading about 65 per cent below a record set in 2011, …
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