By Yi Tian
Nov. 10 (Bloomberg) -- Cotton rose for the first time in four sessions on speculation that China's $586 billion stimulus package will revive growth in the world's fourth-largest economy, boosting demand for commodities.
China said it will spend 4 trillion yuan, or almost a fifth of last year's gross domestic product, by 2010 in response to a slump in its major export markets as the rest of the world slows. Equity markets rose worldwide and the Reuters/Jefferies CRB Index of 19 raw materials advanced as much as 3 percent, led by copper and energy prices.
``The market is probably now trading the Chinese stimulus package,'' said Mike Stevens, an analyst with Swiss Financial Services in Mandeville, Louisiana.
Cotton futures for December delivery gained 0.82 cent, or 2 percent, to 42.89 cents a pound at 9:39 a.m. on ICE Futures U.S. in New York. Prices plunged 9.2 percent in the previous three sessions.
The fiber tumbled 23 percent in October, the steepest monthly drop since at least April 1986, and before today was down 38 percent for the year as a slowing global economy curbs demand for textiles.
China is the world's biggest cotton user and textile exporter. U.S. is the largest shipper of the fiber.
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