The market climbed to a new 15-year top mainly on buying by
No. 1 cotton producer and consumer China, whose massive textile
industry is scrambling to book orders after coming back from a
holiday which ran from Oct. 1 to 7.

 "It sure looks like it wants to climb (to) $1.15," Jobe
Moss, an analyst at brokers and merchants MCM Inc. in Lubbock,
Texas, said, adding the market may even probe the record highs
beyond $1.17.

 "I think it's the mills again," said Lou Barbera, an
analyst for VIP Commodities brokerage. He added small amounts
of speculative fund buying trickled into cotton from accounts
who believed the market will head higher due to strong demand
for the fiber.

 ICE Futures U.S. key December cotton contract CTZ0 fell
0.92 cent to close at $1.0958 per lb. The contract touched a
session and 15-year top at $1.1238 hit during overnight.

 Volume traded in the market stood at an estimated 21,339
lots at 2:38 p.m. EDT (1838 GMT), some 7.0 percent above the
30-day average at 19,991 lots, Thomson Reuters preliminary data
showed.

 Another source of inspiration for cotton was news India has
suspended cotton export registration after receiving
applications for the stipulated exports of 5.5 million bales.
[ID:nSGE69A0AA]

 The announcement is potentially bullish for cotton futures
because it removes another source of fiber from the world
market at a time when demand is strong and most of the cotton
that has already been harvested has been sold to consumers.

 Bill Raffety, an analyst for commodity futures brokerage
Penson GHCO, said this puts more pressure on U.S. cotton
exportable supplies going forward.

 Traders said while U.S. cotton exports are estimated at
15.5 million (480-lb) bales, every single bale will be sold
given tight stocks.

 The trade will now be looking toward the weekly export
sales reports of the U.S. Agriculture Department on Thursday to
see if the demand pace has not slackened.

 Traders said investment funds are also coming back
aggressively into fiber contracts after reducing net long
positions in the cotton market.

 In its Friday report on cotton futures, CFTC said the net
long position of non-commercials fell to 32,043 lots from
39,171 lots net long in the previous report, and managed money
accounts' net longs stood at 23,066 lots from 31,402 lots net
long. [ID:nN08218996]

 Raffety and Barbera said it would be interesting to see if
those net long positions have risen to reflect the buying by
funds in last Friday's rally. The CFTC data showed outstanding
positions as of last Tuesday.