What is in this article?:
- Cotton prices push even higher
- Indian textile industry requests cotton export halt
- Chinese cotton takes another hit with frost
Cotton is currently riding a bull so lively that market analysts find it hard to quantify potential prices.
Already at a 15-year high (cotton for December delivery is currently just over 93 cents), cotton prices appear poised to move much higher with news that the Chinese and Indian crops have been hit with rains and frost.
The Indian cotton shortage is so acute that the nation’s textile industry (which employs some 35 million people) has asked for cotton exports to be halted through December. As of Tuesday morning, the Indian government was reportedly studying the request.
Chinese weather has also been less than friendly to the country’s cotton crop.
“We’ve talked about it all year and there are some real problems, there,” said O.A. Cleveland, Mississippi State University Economics Professor Emeritus, during a Tuesday morning panel discussion sponsored by Ag Market Network. “The USDA dropped that crop 500,000 bales last week — and it will probably come down lower.”
In August, “Chinese textile exports set a monthly record. And Chinese textile exports have been higher for 10 consecutive months — setting three new monthly records.
“So, extremely strong demand is hanging around this market.” As of the Monday morning, “Chinese prices were at $1.30 and 28 points. And they’re still climbing.”