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Cotton prices flare up amid reports of shortage

16
Oct '09
Cotton prices are on fire amid reports that the white gold could be in short supply. Cotton production is expected to be lower this year, due to which textile mills are resorting to panic buying.

On, Wednesday, they grew by Rs 25 per maund. A mad scramble is being witnessed since the last few days, by textile mills that have enough resources at their command.

The spinners continued to build up long positions. New York cotton futures rose further by 1.20 and 1.15 cents per lb for both the ruling October and the distant December at 65.88 and 68.35 cents respectively on renewed foreign buying.

Experts from the sector, say that this trend of price increase will remain, which will definitely work to the cotton farmers, but those textile mills without adequate finances, will have to pay higher prices with the passage of time.

Fibre2fashion News Desk - India


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