Delayed Indian monsoon triggers cotton prices to all time high
22 Jun '05
1 min read
The news of delayed monsoon turning to extend the dry weather across India cutting the cotton output helped peg up cotton prices at the New York Board of Trade exchange.
The New York Board of Trade Cotton futures trading for December delivery shot up 1.15 cents, or 2.2 percent, to 52.49 cents a pound. This is said to be the highest close since May 13. As per the terms of futures trading, the futures contract binds buyer and a seller to buy or sell cotton at a set price under a specified date.
It's June 22, and the normal onset of rains in most parts of the country, specially the central and western parts has not taken place.
But for the overcast sky at times, the weatherman's prediction belies farmers' expectations after raising hopes of a normal rainfall, this year.
The United Sates Agriculture Department has forecast lower cotton production in India at 15.5 down from 18.1 million, in 2004.
Meanwhile, on the demand side, cotton consumption is anticipated to rise 111.53 million bales, up from previous year's record 108.06 million.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
