ICAC World Cotton Prices Have Risen To Their Highest Level In 15 Years.

2010/10/11 14:25:00 57

According to international

cotton

In October 1, 2010, the Advisory Committee (ICAC) released the report that international cotton prices have risen almost since April 2009.

Prices have risen particularly since August 2010.

The Cotlook A index rose to 115.60 cents per pound in September 29, 2010, up 80% from a year earlier, the highest price since May 23, 1995.

The recent rise in cotton prices is mainly due to the stronger fundamentals of the market than expected.

World cotton inventories decreased by 24% to 9 million tons in 2009/10.

It ended the 5 years of high inventory.

World of 2010/11

Cotton yield

The rebound is expected to be 16% to 25 million tons, benefiting from a marked rise in cotton prices last year.

The amount of the global cotton mill should continue to recover, but the recovery rate is far below 2009/10, because the supply of cotton is limited and fiber prices remain high.

2010/11's output and cotton consumption are expected to be basically balanced, and the world's final inventory is expected to not increase significantly.

Pakistan's cotton production was delayed in August due to floods in August, and the cotton picking time in China and India was postponed. The main export countries restricted exports. These expectations and concerns provided support for cotton prices in the first two months of 2010/11.

ICAC

The price model predicts that the average Cotlook A index for 2010/11 is 90 cents / lb, which is 15% higher than that of last year, the highest price since 1994/95.

The 95% confidence interval is 78 cents -106 cents / pound.

This forecast indicates that cotton prices may fall from the current high level later this year.

However, external factors, such as uncertain global economic prospects, may affect the global cotton trade and price competition between cotton and other fibers. These factors may affect the growth of cotton in 2010/11.