ICE Cotton Futures Settle At $1.4223 A Pound

Cotton futures on the ICE Futures U.S. exchange continued to mark new highs not seen since the end of the U.S. Civil War, settling up 1.78 cent a pound, or 1%, at $1.4223 a pound Friday--in the sixthconsecutive day of gains. "We guess it's demand," said Sharon Johnson, an analyst with First Capitol Group in Atlanta. "It's hard to know when we make new highs." That's because speculative funds tend to jump in as prices are rising, but then flee "once they realize how high prices are," she said, noting Friday was "an extraordinary volatile day." Johnson suggested cotton mills are more likely buying to ensure supply down the road than for any current demand, but any attempt to pass such high prices on to consumers may meet with resistance, eventually.

source:Dow Jones Newswires