Cotton’s bright prospects | My Machinery
CASE Agriculture
Cotton’s bright prospects

Cotton prices are forecast to rise 17 per cent between Q4 2012 and Q4 2013 as a 12pc fall in production in 2013/14 and continued strong imports by China reduce the global exportable supply, according to a new report from Rabobank. Front month prices fell 18pc in 2012 and were down 63pc from the peak in March 2011 as global stocks jumped 55pc in two seasons. This trend, said the report, was expected to change in 2013/14 as a supply deficit and a 29pc drop in exporter inventories is forecast to result in modestly higher prices in 2013. A 3pc increase in global consumption and increasing cost of production were also supportive factors limiting downside price risks. A Rabobank spokesperson said, “We anticipate the cotton market will be supported by Chinese imports and that reserve selling will not be a negative factor for prices in NY”. “For 2013/14 our outlook suggests further reduction of supply as the stocks-use-ratio outside of China is forecast to drop to the lowest level since 1997/98.”

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CASE Agriculture