Record Price Surge, as 2010/11 Cotton Supply is Almost Sold Out
Relatively low world stocks of cotton; limited supply, robust demand and a very low level of uncommitted cotton caused the surge in prices in 2010/11. The Cotlook A Index surged from 86 cents per pound on August 2, 2010 to a record 186 cents per pound on December 22, 2010. The Cotlook A Index retreated to 172 cents per pound on December 31, 2010. The season average Cotlook A Index reached 129 cents per pound, 66% higher than the 2009/10 average of 77.5 cents per pound. Similar trends were recorded at the ICE exchange in New York trading the cotton futures contract.