An exchange traded note that follows cotton futures rallied Monday after India banned all exports of the commodity.
The iPath Dow Jones-UBS Cotton ETN (NYSEArca: BAL) was up 6% at last check.
It is the second time in two years that the world’s second-largest producer of cotton has banned exports, and the move is “set to squeeze global supplies and push international prices higher,” the Financial Times reported.
“The decision to ban exports took into account the trend of domestic consumption and depletion of domestic availability,” the government said.