Global Cotton Prices Seen Supported On Demand Growth
Global cotton prices are poised to hold long-term well above lows
which lasted from late 2014 into 2016, with demand growth to outpace
production increases despite favourable returns for growers, Abares
said.
The official Australian commodities bureau stuck by a
forecast of cotton prices, as measured by the Cotlook A index of
physical values, averaging 78.0 cents a pound this season, on an
August-to-July basis.
That is 1 cent higher than an upgraded
estimate last week from the International Cotton Advisory Committee,
although implies a fall ahead for the Cotlook A, which currently stand
at 87.10 cents a pound.
Abares foresaw prices averaging 80.4 cents a pound in 2017-18, rising to 88.0 cents a pound for 2021-22.
Global cotton prices are poised to hold long-term well above lows
which lasted from late 2014 into 2016, with demand growth to outpace
production increases despite favourable returns for growers, Abares
said.
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