Shortage of Cotton in China Drives Prices to Near Record High

Filed in commodities, inflation, New Gold by on October 15, 2010 0 Comments

Filed under: China , Options , Economic Data , Commodities China is the world’s biggest importer of cotton. Last week, the U.S. department of Agriculture identified a “severe shortage” of Cotton in China. That was the trigger for a buying spree in cotton like no other, the Financial Times reported . “We’re just seeing blow-offs here that nobody can imagine,” Herman Kohlmeyer, with brokers Michael J Nugent told the paper. The buying frenzy started on China’s Zhengzhou Commodity Exchange where prices shot up to $1.60 per pound. That move set off the rally in New York’s ICE Exchange electronic trading, the FT reported. Prices shot up the 4 cent limit to $1.1487, just shy of the record of $1.1720 per pound set in 1995. Continue reading Shortage of Cotton in China Drives Prices to Near Record High Shortage of Cotton in China Drives Prices to Near Record High originally appeared on BloggingStocks on Fri, 15 Oct 2010 10:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Shortage of Cotton in China Drives Prices to Near Record High

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