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Chinese cotton futures surge on short cotton supply
23 Oct '10
1 min read
Cotton futures in China surged to a record high, due to the apprehension that dipping local as well as global cotton output will aggravate the shortage in the supply of cotton.
Futures increased by 0.8 percent to to as high as 25,200 Yuan per metric ton. New York December cotton futures increased for the third day, rising 1.1 percent to $1.17 per pound.
China is expected to produce 550,000 metric tons less cotton than the earlier prediction made for the year. Cotton yield will drop down to 6.4 million tons from the previous year's 6.95 million tons. The global cotton production is expected to be 96,000 tons less than the formerly predicted 25.06 million tons.
Ever since the cotton trade started about 140 years ago, it was on 15th October that the cotton futures had touched the highest level of $1.198 in New York cotton futures market.
The government of China has already sold all the cotton left with it by 20th October. As a result no more government stock of cotton is available with China.
Futures increased by 0.8 percent to to as high as 25,200 Yuan per metric ton. New York December cotton futures increased for the third day, rising 1.1 percent to $1.17 per pound.
China is expected to produce 550,000 metric tons less cotton than the earlier prediction made for the year. Cotton yield will drop down to 6.4 million tons from the previous year's 6.95 million tons. The global cotton production is expected to be 96,000 tons less than the formerly predicted 25.06 million tons.
Ever since the cotton trade started about 140 years ago, it was on 15th October that the cotton futures had touched the highest level of $1.198 in New York cotton futures market.
The government of China has already sold all the cotton left with it by 20th October. As a result no more government stock of cotton is available with China.
Fibre2fashion News Desk-India
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