This week the October cotton futures contract, on the New York Board of Trade, topped the 100 cents US a pound mark.
Cotton Consultant with ICM, Matt Leeson says despite the strength of the Australian dollar, the futures price translates to around $550 Australian per bale .
He says the market is being driven by supply and demand.
"Stocks are tight and what has exacerbated that over the last few months is less than ideal seasonal conditions in China and india have delayed the harvest, so the mills were depending on getting those bales reasonably quickly and they haven't been available," he says.
Cotton planting has just begun and Cotton Australia estimates 420,000 hectares will be planted , three quarters of which will be irrigated.
Cotton Australia estimates a 3.5 million bale crop, worth over $2 billion.
