NEW YORK: ICE cotton futures steadied after rising over 4% earlier on Friday as a US monthly jobs data miss raised demand concerns for the natural fibre, although prices were still on course for a weekly gain.

The cotton contract for December was last down 0.16 cent, or 0.1%, at 111.45 cents per lb, at 13:19 p.m. EDT (1719 GMT), earlier rising to a fresh contract-high of 116.48 cents per lb.

“The US jobs data wasn’t very good today people are fearful apparel may cost more because of inflation, and that you’ll see less demand after the jobs data,” said Keith Brown, principal at cotton brokers Keith Brown and Co in Georgia. The December contract has risen about 7% so far this week, and is on course for a third straight weekly gain.

There could be some profit-taking after recent highs, and with banks closed for Columbus day on Monday, the market could be getting set up here for some kind of correction next week, Brown added.

Earlier this week, the cotton contract stuck its upper limit twice, and Friday’s high set an all-time peak for the December contract for the third time this week.

“While the cash market is rooted in reality, the past has shown that the futures market can take on a life of its own and resemble more a casino than a true price discovery mechanism,” Peter Egli, director of risk management at British merchant Plexus Cotton, said in a note.

“With China probably coming back with speculative vigor after its week-long holiday and with the WASDE (USDA’s World Agricultural Supply and Demand Estimates report) next Tuesday possibly showing some bullish corrections (Indian stocks and Chinese imports), it is difficult to see this rally coming to an end anytime soon,” Egli’s note said.