American weekly exports of cotton are up nearly a third from last year. The only thing holding shipments back is logistical chaos, and the difficulty of moving product right now amid high freight rates between Asia and the US.

December contract gained 2.9 per cent on ICE Futures US, bringing October’s gain to 7.5 per cent. The commodity surged 52 per cent this year supported by projections for a second world deficit. Stockpiles at ICE-monitored depots are poised to drop to the lowest level in a year. A large short position held by commercial traders has also kept prices firm, with those participants expected to cover shorts during retreats. Late US harvest, low certified stockpiles and huge demand from China will likely cause a squeeze for December contract.

Prices may climb higher in the next two months. While the US is expected to collect a bigger crop, the harvest is very late. Heavy rains in Southwest Georgia, the second-biggest producer, parts of Alabama and northern Florida will probably prove disruptive, though long lasting damage is unlikely. Consumer demand for cotton apparel is also exceeding supplies. The US is importing more, yet clothing stores are experiencing record low inventories compared to sales.