Commodity News
HeadLine : Cotton price near decade high on demand-supply constraint
Date : Sep 30 2021
Cotton for December delivery rose as much as 2.7% to $1.0274 a pound in New York. Prices have jumped 13% in just five days, boosted by supply concerns in the U.S. and strong emerging-market demand. Gains have also been intensified by traders rushing to cover short positions. The surge means clothing prices could get more expensive, as manufacturers respond to higher raw-material prices, adding to inflationary pressures already rippling through the global economy this year. In cotton, “the market still has the potential to rally further," Commonwealth Bank of Australia commodities strategist Tobin Gorey said in a note. “Market discussion has included whether or not cotton prices might head back to $2. In the current supply context we think that price level is unlikely," he added. Instead, countries with large inventories of cotton lint, such as India and Bangladesh, are likely to sell more and expand their market share, he said. 

Source: Live Mint

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