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ICE Cotton Turns Back up, Drived by India

2010-12-6

Cotton prices rose to their exchange-permitted limit for three consecutive days last week after the Indian government announced it would block exports of cotton yarn. December futures ended Friday up 3.6% at $1.4233 a pound on the ICE Futures U.S. exchange, having recovered half of the 24% slide they had after reaching post-Civil War highs last month.

Textile Minister Dayanidhi Maran last month decried the lack of cotton in the Indian market, saying he was more concerned about the supplies to local textile mills than satisfying export demand. Heavy rains have delayed harvesting in key regions, further limiting supplies to the local market.

Demand for Indian cotton has soared in the past few months as the country is expecting a bumper crop, while two other key producers—China and Pakistan—have estimated losses of the fiber crops due to floods.



Source: Commodity

 
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