US commodities regulators are to launch an investigation into the cotton futures market following concerns about a sharp hike in cotton prices in February and early March.

The Commodity Futures Trading Commission (CFTC) believes there could have been possible manipulation of cotton prices since the rise came amid reports of an oversupply of cotton in the US.

In a statement yesterday (3 June), the CFTA said it is "taking the extraordinary step of disclosing this investigation because of today's unprecedented market conditions."

It added that details of the ongoing investigation remain confidential.

The commission is under pressure to explore the reasons behind the soaring price of oil, gasoline, corn and other commodities.