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Cotton futures up

NEW YORK:New York cotton futures reached the 2.00-cent limit at midday on worries over new pest infestation in the High Plains of Texas and a drought throughout much of the southeastern U.S. market sources said.

Contracts rose the 2.00-cent limit across the board at 1055 EDT.

"The specs are looking for considerable deterioration in crops," David Brandon, senior vice president with Smith Barney said. "We thought the North Delta region would stand to benefit from winds coming from the west (last week) but when that didn't happen, the market rallied."

Brandon added that a the weekly crop report issued by the USDA should show a drop in crop ratings when it is released later today.

"If we don't see sharp declines in overall crop ratings, particularly in the Delta and in Texas, the market could be down considerably tomorrow."

At 1113 EDT, most-active December was trading the 2.00-cent limit higher at 81.72 cents a lb. The high was 81.72 and the low 80.00. October was also up the 2.00-cent limit at 83.50 cents a lb. The back months were 0.90 higher to 2.00 higher.-Reuter