Home / Knowledge / News / Textiles / Lower supply may lift cotton prices in 2013: Analysts
Lower supply may lift cotton prices in 2013: Analysts
08
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 23rd Jun 2017

Textile ministry organises training workshop on GST

The ministry of textiles had organised training workshop on GST which ...

Apparel/Garments | On 23rd Jun 2017

Uware Brands into licensing agreement with Polaroid

Uware Brands has entered into a licensing agreement with Polaroid for ...

Textiles | On 23rd Jun 2017

Ralph Lauren ex-president Tiger of Sweden's new CEO

Hans-Christian Meyer, former president of Ralph Lauren Corporation,...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Larry L Kinn
Suominen Corporation

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

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

SUBSCRIBE


Browse Our Archives

GO


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