Cotton prices have hiked tremendously to record the highest ever in four and a half years. Contract for March trading in Australia ended at 33 cents a kilogram which can be termed as best since October 2003.
The rise in price can be attributed to rising demand in the international market and insufficient supplies of cotton. Experts believe that prices are likely to rise even further. According to the estimates, by 2009 cotton prices, for lint alone, will get as close as US $500 per bale.
By the time the year 2010 approaches, cotton prices are likely to touch $530. The situation will be most welcomed by cotton growers and manufacturers although it is yet to see if the international market for cotton goes at the same pace to adopt this massive surge in prices.
Besides, the trend for cotton exports will also be under close scrutiny to see if there has been a decline in orders due to rising prices of the fibre.
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