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White gold may test 15-year highs
16 Aug '10
2 min read
Worldwide cotton prices may test new highs if experts are to be believed. According to them it may touch the highest price prevailing in 1995 and in all likelihood will grow by 13 percent to a 15-year high of 94.9 cents a pound, before the new cotton crop comes in to the market in October 2010.
This is mainly on account of the biggest purchaser of cotton; China whose textile and apparel sector has an insatiable appetite for the white gold, which has resulted in its cotton imports from the largest exporter of cotton; USA, growing by 24 percent year on year in 2010.
It is also expected that supply of cotton in the new cotton season may not be able to keep pace with rising demand from the Asian countries. Global inventories too are at an all-time low. Data reveals that US stockpiles amounted to just 3.1 million bales at the end of July, the lowest level since 1996.
It is projected that worldwide demand will in all likelihood increase by 2.7 percent this year to 120.87 million bales, boosted by a demand form China whose imports are expected to reach 12.5 million bales, up 14 percent and that of Pakistan by 53 percent which has been ravaged by floods and in the process has destroyed the standing crop.
According to the Indian Cotton Advisory Board (CAB) the consumption of the world's second largest cotton consumer is expected to rise by about 8.9 percent to 20.7 million bales by the end of cotton year in September 2010. It is also expected to grow by 26 percent to 33.3 million bales in the next season.
This is mainly on account of the biggest purchaser of cotton; China whose textile and apparel sector has an insatiable appetite for the white gold, which has resulted in its cotton imports from the largest exporter of cotton; USA, growing by 24 percent year on year in 2010.
It is also expected that supply of cotton in the new cotton season may not be able to keep pace with rising demand from the Asian countries. Global inventories too are at an all-time low. Data reveals that US stockpiles amounted to just 3.1 million bales at the end of July, the lowest level since 1996.
It is projected that worldwide demand will in all likelihood increase by 2.7 percent this year to 120.87 million bales, boosted by a demand form China whose imports are expected to reach 12.5 million bales, up 14 percent and that of Pakistan by 53 percent which has been ravaged by floods and in the process has destroyed the standing crop.
According to the Indian Cotton Advisory Board (CAB) the consumption of the world's second largest cotton consumer is expected to rise by about 8.9 percent to 20.7 million bales by the end of cotton year in September 2010. It is also expected to grow by 26 percent to 33.3 million bales in the next season.
Fibre2fashion News Desk - India
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