Friday, August 13, 2010

Cotton Prices Exploding to Multi-Year Highs

Cotton prices are surging on the back of anticipated shortfalls in global stockpiles caused partly by the devastating floods in Pakistan.
Prices of futures contracts have risen 16% in the past month to the highest since March 2008. The latest rally got underway on widespread concerns that tight global supplies wouldn't be able to keep pace with surprisingly robust demand from textile makers.
Prices got a new boost on Thursday from a widely anticipated report from the U.S. Department of Agriculture quantified the potential damage to the cotton crop in Pakistan, which is likely to boost import volume this year