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Uncertainty prevails in Australian cotton market
Jun '11
The price of cotton has dropped significantly in Australia from a record high of AUD 1,000 per bale (1 bale = 227 kg) in March 2011 to around AUD 600 per bale now.

The fall in prices of cotton is due to decline in exports and negative sentiments prevailing in the financial markets, aver experts.

They, however, say that the main reason for the decline in prices is the stoppage of cotton purchase by textile mills.

At present, the warehouses of cotton mills are filled with stocks of expensive yarn. Hence, there is some uncertainty prevailing in the market, especially in view of the fresh cotton expected to arrive in the next few months.

Fibre2fashion News Desk - India

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