Cotton prices will tumble next season to the lowest in nine years, the International Cotton Advisory Committee said, flagging the prospect of stocks of the fibre outside China hitting “one of the highest volumes on record”.
The intergovernmental group cut to 69 cents a pound, from a revised 71 cents a pound, its forecast for average world cotton prices 2017-18, which begins next month.
The downgrade took the figure even further below the average price estimate for this season – which was nudged higher by 1 cent a pound to a four-year high of 82 cents a pound.
And it left the forecast for world prices – as measured by the Cotlook A index of physical values, which in including an element for transport typically hold a premium over futures – at the lowest since 2008-09, when values averaged 61.2 cents a pound.
Source: www.agrimoney.com