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Cotton market faces price hike risk on Pakistan supply woes

Possible export limits in India and drought in U.S. compound worries

Tight supply, accompanied by increased demand as China reopens, could cause a global shortage of cotton.   © Reuters

TOKYO -- Market watchers are bracing for the risk of a sharp rise in cotton prices as last year's flooding in Pakistan and concerns about trade barriers in India combine with an improving global economic outlook that could boost clothing demand.

Cotton futures have inched higher this month after largely staying in the same territory since November. Friday's close of 86.7 cents per pound in New York was up 4% from the end of 2022.

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