Australian growers missing out on some of the cotton price boom

Cotton continues its record run, with a new high price set last Friday.

The global shortage, which is pushing up prices, is forecast to continue for the next six months.

Matthew Leeson, from Independent Commodity Management, says international market is doing extremely well, although with most of the domestic cotton  already sold on the futures market, much of the high prices can't be enjoyed by Australian farmers.

The cotton price is going gangbusters, though Australian farmers are missing out on the full benefit because of futures contracts (Julia Holman)

"There's certainly no handbrake on this market at the moment," he said.

"We saw another round of fresh highs set as recently as Friday night with prices trading up through the 1864 Civil War high, and reaching a high of almost 195 cents.

"So it's been an amazing ride, basically doubled or a little more doubled since last August."

(Source: http://www.abc.net.au/rural/news/content/201102/s3137867.htm)