ICE Cotton Futures Settle Higher, Helped By Stimulus

Cotton futures on the ICE Futures U.S. exchange, already creating new record high prices, hit an intraday high of $1.4052 a pound before settling up 4.93 cents a pound at $1.4045 a pound, still a record settlement for the fibrous crop in high demand from emerging economies, particularly in Asia. Analysts and traders said the commodity, already a price leader because of a supply shortage, is likely to keep rising as it is seen as a place to make gains with dollars that otherwise will be affected by the U.S. Federal Reserve's announced plan to stimulate the U.S. economy again. James Cordier, president of Liberty Trading Group in Tampa, Fla., noted that as commodities are seen as a hedge against the loss of value in the dollar resulting from the stimulus, those commodities such as cotton that already have a fundamental reason for rising will "lead the way."

ICE Dec10 Cotton Trend:

source:DOW JONES NEWSWIRES