The Soaring Price Of Cotton: The Problem Of Supply And Demand Is Becoming Increasingly Obvious

　　 cotton The price has soared to a 25 year high. At the ICE American Futures Exchange, the cotton price is currently 93.73 cents per pound, up 24% this year, the highest level since October 1995.

Ronald Lawson, managing director of LOGIC Advisors, a bulk commodity consulting company, said that the supply issue should be considered when the demand is increasing.

According to the United States Ministry of Agriculture It is expected that global cotton consumption will exceed its output this year, which will further reduce cotton stocks. From the supply side, Pakistan, the world's largest cotton grower, suffered a serious output reduction due to floods, while India recently imposed prohibitive taxes on cotton exports to protect domestic textile manufacturers.

The rise in cotton prices Economic recovery It is a positive signal because it is the main economic indicator with the longest cycle among all commodities.

From a package of cottonseed to a T-shirt, it takes about 18 months, and the period has gone through the stages of planting, cotton ginning, spinning and weaving.

Lawson said that no other raw material is so time-consuming and affected by so many factors.