July 01, 2007	Sunday	Jamadi-us-Sani 15, 1428

NEW YORK, June 30: US cotton jumped 4 per cent on Friday, hitting a new lifetime peak for its benchmark futures after an 18-year low estimated for plantings. The US Department of Agriculture estimated the upland cotton area for 2007 at 10.760 million acres -- the lowest since 1989 and down from analysts' projections of 11.5 million to 11.6 million acres for the current year.

Acres are down almost double what everyone was expecting.

This is just flat out bullish, said Alan Feild, an industry commentator with the Memphis, Tennessee-based iamhedged.com.

Using an “abandonment” math that cut acreage by another 12 percent -- and reducing yield estimates to 775 pounds per acre from the 814 pounds in 2006/07 -- Field put production for the current season at 15.71 million bales against a previous 21.59m bales.

That implies that ending stocks will fall to around 3.5 million bales, he said.

Stocks were estimated at 9.5 million bales at the start of the 2006/07 season.

Benchmark December cotton on the New York Board of Trade settled up 1.70 cents, or 2.76 per cent, at 63.33 cents a lb. It had jumped 4.5 per cent earlier to a life-of-contract high of 64.40 cents. The session low was 62.80.

Since Tuesday's close, NYBOT's December cotton has jumped 3 percent, energized by predictions that the USDA will cut planting estimates this week. —Reuters