Cotton Market Sharply Rebounding

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1 December 2008 - Cotton prices sharply rebounded in the last week, in line with a sudden recovery of equity and commodity markets. Physical demand however remained very flat, as textile production was indicating new signs of weakness in Asia. Governments in China, India and Pakistan may increasingly purchase cotton lint in order to support prices, therefore artificially raising raw material costs of textile industry and therefore depressing textile production and cotton consumption.

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