U.S. cotton futures rallied Friday to a 150-year peak on trade and speculative buying as very tight supplies were expected to push the market to the unheard of level of $2 a lb by next week, analysts said.
The key March cotton contract CTH1 on ICE Futures U.S. rose 6.42 cents to $1.94 which marked the highest price since the Civil War. The early low was $1.8796.
"There are no supplies available," said Lou Barbera, cotton analyst at brokerage VIP Commodities.
He said buyers, faced with a virtual dearth of physical cotton, were being forced to pay up to get some material.
Since the benchmark March cotton contract can only rise the 7-cent limit to $1.9458, attempts to hit the $2 a mark level will have to wait for next week.
"We should be well over $2 next week," said Barbera.