Cotton price skyrockets

The cotton price surges at global market recently. The price in last week hit 15 years' record high. Most experts attribute this big rise to the serious floods stricken Pakistan. The floods destroy a large number of crops and consequently the supply of cotton will reduce drastically. However, yarns and textiles made in Pakistan enjoy a good reputation all over the world and Pakistan is one of five largest importers of cotton in the world. As a result, Pakistan will import much more cottons than before due to the shortage caused by the floods. The demands at a global scope will increase too.

Cotton price of October in New York ICE is 90.1 cents per pound with a rise of 3.5%. Morgan Stanley expects the continual rise of futures price of cotton.