The cotton price has exceeded $ 1.5 a pound (453.6 grams) for the first time since it`s traded at U.S. stock exchanges, in 1870, due to huge demand from China, which will reflect the evolving global markets retail in the coming months.
The quotation, which has doubled since the beginning of this year, exceeded several partial records in the recent weeks, the market being supported by low short-term supply, reducing inventory and rapid application recovery, said the Barclays Capital Bank analysts.
The situation was highlighted in a report by the U.S. Department of Agriculture (USDA) on the supply and demand. The cotton production in China, which covers 40% of global consumption, has been revised down due to unfavorable weather conditions.
Estimates of Chinese stocks were also reduced after the supply deficit in recent weeks, declared the American ministry.
Source: http://www.mediafax.ro |
