Home / Knowledge / News / Textiles / Cotton prices unlikely to reach last two season's levels
Cotton prices unlikely to reach last two season's levels
02
Oct '14
Given the predicted 1.8 million tons of surplus cotton production and changes in China’s cotton policy, prices are unlikely to rise to the levels seen in the last two seasons, says a report of the International Cotton Advisory Committee (ICAC).

“With the fall in prices, world cotton consumption is forecast to rise nearly 4% to 24.4 million tons with more of the consumption occurring in the latter half of the season as the market becomes more certain about the size of the new crop and can better determine an appropriate price for cotton,” it informs.

While cotton’s absolute volume of consumption is likely to grow, it will probably not gain back much its market share as it takes time for the market to adjust. The price volatility observed in the 2010/11-2011/12 seasons is not forgotten, and other competing fibers’ market shares have been growing.

In 2014/15, 33.8 million hectares were planted with cotton, up 3% from last season due to higher international cotton prices in 2013/14 and world cotton production is forecast to grow 1% to 26.2 million tons.

With greater incentive to improve yield and quality due to the new policy, Xinjiang, the largest cotton-producing region in China and the province where the trial subsidy is being implemented, is expected to have a bigger harvest than last season, and China’s overall production is projected at 6.4 million tons in 2014/15.

India expanded cotton area by 5% as the delayed monsoon encouraged farmers to switch to cotton, and with yield closer to the 3-year average, production is likely to reach 6.6 million tons, making India the world’s largest cotton producer in 2014/15.

Harvested cotton area in the United States could reach 3.9 million hectares as plentiful rainfall reduces the abandonment rate this season and production is forecast at 3.7 million tons, up 30% from 2013/14. Although some flooding has occurred in Pakistan recently, impact to the cotton crop has been minimal, and production is projected at 2.1 million tons in 2014/15.

While China imported much of the surplus production in the last three seasons, this season it has announced that it will not provide additional quota in 2015, beyond the required 894,000 tons, as it has in recent seasons.

The restriction on imports next season it seems has been implemented to help reduce the large government-held cotton stocks, given that China’s consumption is expected to exceed production by around 1.5 million tons.

Though some mills still hold additional quota for 2014, China’s imports are forecast to fall 36% to 2 million tons, and world imports would decline 11% to 8 million tons and imports by the rest of the world, notably Southeast Asia, are projected to increase 2% to 6 million tons. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Apparel/Garments | On 15th Dec 2017

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Strategic location, modern factory facilities and proximity to the...

Courtesy: 2XU

Apparel/Garments | On 15th Dec 2017

L Catterton Asia announces JV of GXG and 2XU

L Catterton Asia, the Asian unit of the largest and most global...

15 trade associations urge nations to safeguard WTO system

Apparel/Garments | On 15th Dec 2017

15 trade associations urge nations to safeguard WTO system

Fifteen trade and industry associations from across the world have...

Interviews View All

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Pranav Mishra
Huemn

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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