The Intercontinental Exchange acted quickly Thursday to impose new limits of position on trade, to try to stop the accumulation of unique Fund.
Market participants wanting to take over 300 contracts, which is equal to approximately 30,000 bales, meanwhile, must apply for approval and prove that they have an economic need for cotton.
"Any exemption would be to only specified contract month and should not be regarded as the relief of the responsibilities of all traders have to make their operations in a manner consistent with an orderly market, the ice.
Friday cotton futures had fallen slightly 4 or 2pc, $ 1.68 per pound, remains unusually high.
However, the International Cotton Advisory Committee believes that the problem runs more profound as hot money outbreak in the sector.
He thought that jumping to award two years ago was caused by speculators, but acknowledges this last rally on "world cotton, very low stocks limited offer, demand robust and a depreciation of [the] dollar." This means that the price increases could be here until that U.S. farmers are planting crops more.
Saturday, U.S. producers the biggest exporters of the world, is committed to increasing the areas planted by 14pc this year. National Council of said cotton plantation will be mounted at 12.5 m acres.
However, it will take time and retailers are already achieved. Clothing strings warning of higher prices is supergroup, Marks & Spencer, Hennes & Mauritz, all saying them that their margins can be achieved.
AB Foods said last month, growth in 2011 may be limited by the effects of rising of fresh products, especially after impact over cotton prices in Primark.
However, the retailer said it would not be passing on the jump in costs to shoppers at budget fashion chain.
"We will remain the best value on high street," said John Bason, Chief Financial Officer of AB foods.
"Some of the gain margin [done in the previous year] will be giving back," he said.
Lord Wolfson, CEO of the next is more phlegmatic, arguing that the increases are just part of a cycle.
"Of course there is a concern, but at the end of the day, we do not know until we see what happens to prices, he said."
"Sometime cotton comes to offshore." Longer term it will facilitate. Bubble products tend to push harder and longer than expected. »
Commerzbank analysts also believe the commodity is in a bubble: "We believe that cotton prices is already in a phase of exaggeration and expect a sharp fall in prices in the coming months."
Meanwhile, Marc Ostwald titles of the Monument takes view long term beyond the boom and bust - inexorable increase in this cotton is part of a broader trend across commodities.
"It is just food and energy prices that are encroaching on real disposable income in the world as a whole, but also raw materials for clothing", he says.
"A bubble may partially be, but should make no mistake there is a fundamental underlying"basic change", which the combination of the legacy of globalization, in terms of an outsourcing permanent production and humiliation of the USD everyone in the world very expensive, it warns."
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