US cotton growers see higher prices

US cotton prices have climbed to about 75¢/lb (45p/lb) largely on the back of a smaller than expected harvest, reports the Financial Times.

Weather problems in China, creating the possibility of a shortage, have heightened the market outlook.

But this optimism is set against a background of shrinking prices over a number of years. Cotton was trading at 90¢/lb three years ago.

Cotton production this year is likely to be down. The US Department of Agriculture estimates it will fall 24% by 14.2m bales.

The cotton crop has been damaged by either the weather or insects.

• Financial Times 01/09/98 page 32