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10.29NYBOT Cotton Is &Nbsp High; Supply Is Limited.

2010/11/1 15:53:00 90

According to New York's October 29th news, NYBOT cotton (28540715.00,2.57%) futures rebounded on Friday, amid persistent worries that global supply will not meet the growing demand.

The price of cotton in October hit the highest level since the American Civil War in nineteenth Century.

Analysts said cotton was rising due to strong demand, tight stock and investment funds almost constantly buying.

The price of ICE cotton rose to a record high of US $1.305 per pound in October 26th, pushing the three month rally trend to a peak, and the price has risen by about 80% since July.

NYBOT cotton gained 3.58 cents, or 3%, in December cotton.

Per pound

1.2526 dollars.

The contract rose 23% in October, or the highest monthly increase in November 2001.

Although the latest weekly export sales report shows that the United States

cotton

Export sales fell nearly 50%, but still higher than last year, as textile mills scrambled to replenish inventory.

The latest CFTC data show that in the past month, non-commercial organizations and management funds have increased their net long positions to the highest level in the US cotton market.

Mississippi Historical Society economic historian Eugene Dattel said cotton prices once rose to nearly $1.89 a pound during the most severe period of the American Civil War.

Analysts say cotton prices are at historically high levels, which may hinder some purchases, but demand is huge in China, which is expected to support the market in the short term.

China is the largest cotton consumer in the world, and is trying to make up for the supply gap caused by the damage of cotton crops in China.

India may not be able to fulfil its export of 1 million bales of cotton to Pakistan, which prompted a jump in cotton prices on Friday.

First Capitol Group phase cotton expert Sharon Johnson said the United States released data on gross domestic product (GDP) and

dollar

After weakening, cotton futures prices began to rise.

Another support factor for the US cotton price is the close closing of China's cotton market and the strong Cotlook A index.

The Cotlook A index is composed of five lowest prices in the global market, but it is still higher than the ICE cotton market price.

Analysts say any resolution FED has made to revitalize the fragile US economy and the impact of the resolution on the dollar will affect the cotton market next week.

The total turnover of cotton futures is more than 34000 hands, which is about 30% higher than that of the 30 day mobile average of 25000.