Cotton futures jumped 3.5 percent to another record after the U.S. Department of Agriculture reduced its estimates for domestic production and inventories.

Output will be 18.42 million bales in the year ending July 31, down 2.4 percent from last month’s projection, after crops in Texas were damaged by adverse weather, the USDA said today. The agency lowered its estimate for world output by 1.2 percent. Before today, futures surged 88 percent this year amid a shortfall spurred by China’s increasing demand.

“It’s as bullish as any report I can remember,” said Mike Stevens, 72, an independent trader in Mandeville, Louisiana. “The big surprise was the cut in the U.S. production.”