Dec 16, 2010 12:50 PM
An indecisive India, the globe's second-largest cotton grower, helped increase the price of the soft commodity to its highest rate in a month, Bloomberg reports.
Farm minister Sharad Pawar said last month that India would decide by early December whether to stop restricting exports of the fiber but no decision has been publicized. Prior to Thursday, cotton prices have climbed 88 percent this year in response to efforts to satisfy increasing demand from the world's biggest user of cotton, which is China.
"Prices have been propelled as a decision by the Indian government may be made much later than earlier anticipated," according to a report by Andy Ryan, a senior risk-management consultant at FCStone Fibers & Textiles in Nashville, Tennessee.
While en route to the biggest annual gain since the early 1970s, cotton for March delivery climbed 2.3 percent to $1.4543 per pound shortly after 11 a.m. in New York. On November 10, cotton's price was $1.5195 per pound.
"Technically, the market looks very bullish," Sharon Johnson, a senior analyst at Penson Futures in Atlanta, told Bloomberg earlier this week.
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