US Cotton Hit A New High Of &Nbsp In 150 Years; Next Week'S Target Is US $2.

Reduced supply of cotton

ICE cotton futures, the key cotton contract in the US, rose 6.42 cents to $1.94 in March, setting the highest price since the American Civil War.

The low point was $1.8796 in early trading.

VIP commodity cotton analyst Barbera (LouBarbera) said that the market lacks the source of cotton.

He said the market was not in stock, and buyers were forced to raise prices and buy some raw cotton.

Since the benchmark cotton contract can only rise 7 cents to 1.9458 dollars in March, the market needs to test the $2 mark until next week.

Bella said: "the market should break through 2 dollars next week. The price of cotton in September 2010 will exceed 1 dollars / pound, which is the only second time in nearly 50 years.

Now, the price of cotton seems to be over $2, and some are even talking about the market, which is expected to reach $3 or $5.

Analysts say that the main reason for the rapid growth of cotton prices is the scarcity of supply, and some of the northern hemisphere cotton has been picked.

Cotton supply in India, the world's second largest cotton producer, did not enter the market because of agricultural inflation worries in the subcontinent.

The world's biggest cotton exporter worsens the shortage of goods in the US.

The output is 18 million 320 thousand bales (480 pounds / pack), and about 95% of the cotton has been sold.

Analysts say the drought in China, the world's largest cotton producer and consumer country, has stimulated cotton prices to rise.

The Zhengzhou Mercantile Exchange September cotton contract rose to a record high of 34390 yuan on Friday, ending at 33795 yuan, up 145 yuan.

The ICE Futures Exchange announced that the cotton margin increased by 25%, but failed to restrain the market from rising.

Analysts say there will be a longer rally in the spring planting season for crops in the United States.

The market is now concerned about the US Department of agriculture's report on planting intentions released in March 31st to see whether the increase in cotton prices will stimulate farmers to expand their cotton planting area in 2011.

Industry organization national cotton Committee said 2011