Manipulation didn't cause 2008 cotton spike-CFTC

WASHINGTON Jan 5 (Reuters) - Market manipulation did not cause cotton futures prices to artificially spike in 2008, the Commodity Futures Trading Commission said on Tuesday after a lengthy investigation.

The CFTC said in a 27-page report that evidence suggested a host of factors may have contributed to the wild movement in cotton futures and options prices, including the broader rise in all commodity prices, presence of market participants such as index traders and the impact of cotton market price limits.

In March 2008, an unusually steep and swift speculative spike in cotton futures prices forced players to ante up extremely high margin calls to cover their positions. After the run-up, cotton prices then fell almost 30 percent during the next few weeks.