* Rally ends 9-day losing streak, rises almost 4 pct
* Synthetic prices pointing higher
* Bulls points to tighter supplies
NEW YORK, June 3 (Reuters) - ICE cotton staged its biggest
one-day gain in over seven months and settled limit up on Monday
as speculative investors piled back in to buy after prices sank
to four-month lows at the end of last week.
Bringing an end to a nine-day losing streak, prices jumped
2.5 cents per lb in the final 90 minutes of trading as
speculators piled back in betting on tighter U.S. supplies with
just two months until the end of the 2012/13 season.
Traders saw no obvious trigger for the sudden surge late in
the morning, but Ron Lawson, a partner at commodity investment
firm LOGIC Advisors, said the market had finally woken up to the
bullish factors that he expects to support prices.
"You had nine days down and it ran out of selling. The U.S.
is sold out. Australia is sold out. China's been buying. The
only cotton left is certified stock," he said.
The most-active July cotton contract on ICE Futures U.S.
rose 3 cents, or 3.8 percent, to settle at 82.36 cents
per lb, its daily limit price. That was its best one-day
performance since October.
