Floods in cotton main regions in Australia, Pakistan and China have done wrong offer together with China, the world of fiber, user demand is mounted in arrow.
Cotton for March delivery is spent much of 2 4pc to $1.8122 lb in NYC yesterday.
However analysts believe that prices can now facilitate, as the National Cotton Council of America publishes the results of its investigation into planting intentions today. It was expected to show an increase in farmland in U.S. dedicated to cotton in the current season.
"Gathering of cotton prices looks like now, it contains elements of panic", stated Carsten Fritsch, an analyst of commodities at Commerzbank. "We believe that the price of cotton is already in a phase of exaggeration and expect a sharp fall in prices in the coming months", he added.
"It's basically taken mills of panic," Lou Barbera, cotton products VIP analyst told Reuters. "Mills overseas get the ball."
Cotton prices have increased by 30pc since mid-January, prompting Intercontinental Exchange (ICE) to tighten limits on speculative positions in futures contracts traded on the Exchange.
ICE has proposed that any trading in contracts of more than 300 of cotton ice No2 March future should show was "economically appropriate to reduce the risks associated with potential changes in the value of the assets.
This limit is the equivalent of 30,000 bales of cotton.
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