From a report in the
Financial Times:
Cotton prices have spiked after India banned exports of the fibre for the second time in two years, continuing a volatile run that has roiled the savviest commodity traders. The world’s second-largest producer of cotton instituted the ban with immediate effect on Monday. Analysts said the move was aimed at ensuring sufficient supply of cotton for domestic textile companies, which have been under pressure as prices have risen.
India’s last export ban, declared in 2010, helped ignite an explosive rise to record highs in cotton markets. Farmers and later mills defaulted on deliveries as prices climbed and crashed...
There's more discussion and analysis at the link. I think this sentence is particularly interesting:
India noted what it described as “a tendency of hoarding in bonded warehouses abroad”...
The implication being that recent price changes have not been a result of basic supply/demand factors, but rather that speculation is distorting the markets. That doesn't imply any illegality or immorality, but it is a reflection of how markets work. It's also interesting that the hoarding sounds like it is of physical product rather than just of futures contracts.
ليست هناك تعليقات:
إرسال تعليق