ICE futures contract in December rushed to the 74.78 cent expansion price limit, the highest point in two years, the two trading day rose more than 10%, then prices fell.

In recent years, the market share of cotton has been dominated by chemical fiber. The soaring cotton prices in 2011 led to the selection of other alternatives by textile mills, and the drop in oil prices caused a significant increase in global chemical fiber consumption.

According to federal bank analysts, the USDA monthly expects global end stocks to drop to a five year low. Although the decline in stock prices is expected in the market from the progress of China's reserve cotton sales, the market is surprised that the reduction is more than twice the market expectations.

At the same time, the United States

The extreme hot weather also prompted traders to do more.

However, Holland Rabobank reminds the industry.

After rapid rise, it is faced with resistance from chemical fiber competition.

Although short supply in the market provides support for cotton prices, too high cotton prices will encourage factories to switch to alternative varieties, thereby creating trouble for them.

Although this situation will not happen immediately, we must guard against this trend in the coming months.

Many traders and brokerage firms have been so puzzled by the rising cotton prices. These days they concentrated on December contracts, mainly speculative buying rather than commercial buying.

Jordan Lee, chairman of Eastern Trading, a well-known cotton trader, said there was no good reason to explain such a rise. At present, the market demand is very weak and the high cotton price is too long to be sustained, because many American cotton growers have sold the new cotton this year.