Clothing prices could rise as cotton hits 15-year high

Clothes prices could be set to rise after cotton futures hit a 15-year high yesterday.

Flooding in Pakistan and China - two of the world's biggest growers - have sparked concerns about supplies, sending the price surging.

In New York on Monday, cotton topped $1 per pound for the first time since 1995. Cotton for December delivery advanced to $1.0198 - before dropping back to $1.006.

Hedge fund managers and other large speculators increased their net-long positions in New York futures by 2pc in the week ending September 14, according to data from the US Futures Trading Commission.

Kantilal Shah, chairman of Gill & Co, which has been trading cotton for more than a century, told Bloomberg: "You've never seen such a hectic rise. It has broken the rules.

"Everybody is looking out for cotton because everybody is short," he said. "Supplies all over the world are tight."

He predicted prices could climb by a further 10 to 15 cents over the next 15 days to a month.

SOURCE: Telegraph CO UK By Rachel Cooper