Dipping cotton prices likely to upset cotton growers

01 Dec '10

1 min read

Cotton producers in the southern province of Adana's Çukurova area have mostly withdrawn themselves from trading their cotton. They preferred to store their cotton in anticipation of a rise in the cotton prices, which have recently touched the level of 2.1 Turkish Liras per kilogram. They expect the cotton prices to reach up to 2.5 liras in the coming future.

Cotton has touched the maximum prices in the current months on world commodity exchanges which must have given the cotton growers of Turkey false expectations regarding sudden gains.

However, the lowest closing price for cotton stood between 1.52 and 1.62 liras and the highest price was recorded between 1.62 and 1.67 liras, according to the Adana Commodity Exchange.

The New York Commodity Exchange had registered a fall in the cotton prices because China, which is world's largest importer and consumer of cotton, had contributed towards checking the speculation as well as controlling the inflationary tendencies.

These proceedings indicate that cotton is heading for its largest weekly fall since February 2009. The cotton for March delivery had dipped by 3.8 percent to touch $1.12 per pound on ICE Futures US in New York.

Fibre2fashion News Desk-India

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