The cotton contract also touched the limit, closing 3 cents higher, or 3.8%, at 82.85 cents per pound. The May and July contract prices reflect recent demand for cotton and bids for harvested crops.

An official statement showed that the Indian government stopped the registration of export contracts from April 19 after the ministerial meeting decided to control the sharp rise in domestic cotton prices. The move will shrink India's cotton supply on the international market. At the same time, it will depress Indian domestic cotton prices, which have risen by more than 25% since October, due to poor harvest and expected demand growth in the textile industry. India is the world's second largest exporter of cotton, after the United States. Both countries supply large quantities of cotton to China, which is the largest cotton producer and consumer in the world, and also the largest textile producer in the world. At present, due to the uncertainty of the specific length of time for India to implement export restrictions, China is expected to turn to the United States for procurement. USDA expects global cotton demand to be 14% higher than production in the current year ending July 31. Meanwhile, the United States is expected to export 12 million bales of cotton, but some analysts expect more actual exports.

USDA estimates that US cotton stocks will be at 3 million bales, including spot cotton stocks. May cotton futures delivery began on Monday. Lawson said that China might be looking for 100,000 tons of cotton from the United States, which was originally intended to be imported from India. The recovery in consumer demand has encouraged retailers to replenish stockpiles previously damaged by the crisis. Cotton futures positions fell 1,828 to 183,541 on Monday. Cotton futures volume is estimated at 40,574 hands. About 9,933 call options and 9,790 put options were traded in on-site options trading.