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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: abuelita who wrote (67598)	10/27/2010 12:44:11 PM
From: elmatador	Respond to of 219096

Cotton soars to new high on China cold The price of cotton has soared to a new record, after cold weather threatened to damage the crop in China, the world's biggest consumer. By Rowena Mason, Commodities Published: 6:30AM BST 26 Oct 2010 The fibre on Monday hit $1.2471 per pound, rising by 4.2pc, or 5 cents, which is the maximum allowed by the ICE exchange in New York, . Chinese weather forecasts are saying that the current cold snap will last for at least another day. Prices rose 9pc last week, adding to the record 140-year high hit on October 15, after hail storms hit in the southern US. Texas is the biggest cotton grower in America, which is the world's largest exporter. There are mixed views as to whether the current price spike will remain. "Key players on the cotton market are anticipating high prices in the long term," said analysts from Commerzbank. "India's largest state purchaser, the Cotton Corporation of India, expects a correction in the next few months, as good US and Indian harvests have boosted supply. However, prices should be able to sustain the $1 a pound mark in the next three years on the back of robust demand growth and the low storage consumption ratio." The US Department of Agriculture estimates that stockpiles will drop by 4.3pc in the first six months of next year. Supplies have not been this tight since 1995 and prices are already up by 58pc in New York this year. Analysts from Rabobank believe there are six key reasons why the cotton price is so high: tightening US fundamentals, the battle for arable land, a deteriorating Chinese crop, the weak dollar, the Indian export ban and floods in Pakistan. "Tightening global market fundamentals have been extremely supportive for prices, but so too has the weakness in the US dollar and strengthening speculative interest," they said. "In contrast to the price rally of March 2008, Rabobank believes this rally is more sustainable."