Cotton prices leap, with possible complications for Asian populations
US cotton futures rose 25 % since mid-January. Prices are in their highest level in 150 years. The commodity almost doubled in benefit this past year. Cyclone Yasi and its own potential damages to Asian developing regions could have an impact.
New York (AsiaNews/Agencies) - The price of cotton is increasing fast and may threaten Asia’s mills and factories. US cotton futures jumped for the 3rd straight day time on Wednesday, placing another record. Cotton futures include rallied almost 25 % since mid-January, in what's the most recent wave of a historic run that began in 2010 2010 and sent cotton prices with their highest amounts in nearly 150 years. Cotton has already established the biggest gain among major commodities so far this season, matching a feat it obtained this year 2010 when it attained 90 % for the year.
Cyclone Yasi is worrying the marketplace however since it will eventually strike prime cotton-growing areas found in Asia. Losses there might further crimp products in Asian market segments and negatively influence cotton prices and native economies. After being strike by higher prices on a broad selection of goods, regional communities will suffer a lot more. The textile sectors in China, Vietnam, Indonesia, Pakistan, Bangladesh, India and Sri Lanka are actually very very sensitive to cotton prices.
A study at the Beltwide Cotton meeting this month forecast US 2011 cotton plantings to cover between 12.48 million to 12.53 million acres, a 5-year huge and an increase of around 15 per cent from last year's cotton sowings.
Although america is the biggest fibre exporter on the globe, such a growth in plantings is seen by some in the trade as insufficient to fulfill global cotton demand.
Source: www.asianews.it
