US cotton futures rose 25 per cent since mid-January. Prices are at their highest level in 150 years. The commodity almost doubled in value last year. Cyclone Yasi and its potential damages to Asian growing regions will have an impact.

New York (AsiaNews/Agencies) – The price of cotton is rising fast and could threaten Asia’s mills and factories. US cotton futures jumped for the third straight day on Wednesday, setting another record. Cotton futures have rallied almost 25 per cent since mid-January, in what is the latest wave of a historic run that began in 2010 and sent cotton prices to their highest levels in almost 150 years. Cotton has had the biggest gain among major commodities so far this year, matching a feat it achieved in 2010 when it gained 90 per cent for the year.

Cyclone Yasi is worrying the market however because it will eventually hit prime cotton-growing areas in Asia. Losses there could further crimp supplies in Asian markets and negatively influence cotton prices and local economies. After being hit by higher prices on a broad range of goods, local communities will suffer even more. The textile industries in China, Vietnam, Indonesia, Pakistan, Bangladesh, India and Sri Lanka are in fact very sensitive to cotton prices.

A survey at the Beltwide Cotton conference this month forecast US 2011 cotton plantings to cover between 12.48 million to 12.53 million acres, a 5-year high and an increase of around 15 per cent from last year's cotton sowings.

Although the United States is the biggest fibre exporter in the world, such a rise in plantings is seen by some in the trade as not enough to satisfy global cotton demand.

• asia
• cotton
• prices
• increase