Home / Knowledge / News / Textiles / Lower supply may lift cotton prices in 2013: Analysts
Lower supply may lift cotton prices in 2013: Analysts
Jan '13
The prices of cotton may see an increase if world cotton supply falls below demand in 2013, according to industry analysts.
The year 2012 saw cotton performing badly among agricultural commodities and cotton futures dipped by about 18 percent. Secondly, world cotton inventories at the close of 2012-13 season are expected to be at record high levels.
These two factors may cajole farmers to shift to other crops, resulting in lower supply of cotton and in turn lifting the prices in 2013, opine analysts.
The upside potential of cotton prices is limited in the medium term, agrimoney.com said quoting Commerzbank. The bank expects a marked reduction in cotton acreage in favour of soybeans in 2013-14 season, mainly owing to low cotton prices during the current season.
According to Commerzbank’s analysis, lower supply of cotton may result in market deficit for the first time in four years, which would give a moderate lift to prices.
Global financial services firm Morgan Stanley says the market prices of cotton will be increasingly driven by new-crop supply uncertainties in 2013. The firm foresees at least 30 percent year-on-year decline in cotton acreage in Australia and Brazil.
As per forecasts of Rabobank, global cotton prices will remain stable in the first half of 2013, owing to oversupply in the market. The financial services provider expects global cotton area to contract by 6 percent in 2012-13 and an additional 9 percent in 2013-14.
But, the policies and interventions of the Chinese Government would much influence the cotton price trends in 2013, as around 46 percent of world ending stocks are located in China, Rabobank said.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 26th Apr 2017

Kering's consolidated revenue growth rises 31.2% in Q1

The consolidated revenue growth for luxury group Kering for the first ...

Courtesy: SKF

Textiles | On 26th Apr 2017

SKF brings predictive maintenance for machinery to India

SKF India, a global supplier of bearings, seals, mechatronics,...

Textiles | On 26th Apr 2017

Gap, Athleta to increase use of sustainable fibres

Gap, one of the world's most iconic apparel and accessories brand and ...

Interviews View All

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Sonia Agarwal

‘The terms eco-friendly and organic are common but everyone perceives them ...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search