Cotton prices have climbed to a new high in 140 years, but cotton prices are likely to start falling back as Dezhou's new cotton planting in New South Wales hit a new high for the first time since 2007.

According to Bloomberg's interview with analysts and traders, cotton prices will plunge 51% to $1 a pound before the end of this year.

Hedge funds have begun to reduce the number of cotton bulls, the largest in three years.

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Floods in Australia and Pakistan, coupled with cold and frosty cotton fields in China for many days, the international cotton price climbed to $2.197 a pound in New York on the 7 day, creating a new high since the American Civil War.

Edida, the world's second largest sportswear maker, said this month that the high price of cotton has threatened the profits of enterprises. The manufacturing costs of jeans such as WAL-MART (Wal-Mart), the world's largest retailer, are also rising.

Cotton futures in May fell 2.2% on the 28 day of the New York Mercantile Exchange (Nymex), at $2.02 a pound.

Cotton prices have surged 178% since mid July last year, tracking the price changes of 24 kinds of raw materials.

The index strengthened 42% in the same period, reflecting the US stock market's S & P 500 index rose 20%.

First, Stephenson, an asset management manager, said farmers need to increase production to cope with the shortage of cotton and may sacrifice corn and soybeans.