Cotton futures surged on Tuesday after breaking above last week’s highs

December cotton traded more than 0.60 cents higher on Tuesday to 67.44 cents a pound, a two-week high. Prices had been consolidating for the past few sessions. 

Futures remain about mid-range within a broader sideways range established in the winter. Total volume has declined since earlier this summer as a lack of trading interest has kept prices rangebound. 

The U.S. cotton harvest is underway, with nine percent of the harvest complete, compared to 10 percent the same week last year. Overall, weather conditions have been favorable for crops developing in the Southeast and in Texas. 

Harvest pressure could limit gains as more supplies come online over the next month.

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.