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Momentum in cotton prices may slowdown – experts
Sep '10
In recent days, global cotton prices have risen to a historic high of US $1 per pound, last witnessed, nearly 15 years back. However, domestic cotton prices are expected to see a slowdown in the momentum with which, prices flared up in the last few months.

The main reason being delved out by experts is that, in the next few days, the pace and flow of lint in to the various cotton markets across the country is expected to increase, which is expected to keep a check on rising cotton prices.

The second reason pertains to expectations of a bumper crop in the new season. Cotton output is forecast to rise by 10 percent. An expert has predicted that cotton production will rise from 29.5 million bales last season to 32.5 million bales in the new cotton season.

Also considering the 5.5 million bales cap on cotton exports imposed by the government, is also expected to have a cooling effect on the rising price trends. The Shankar-6 variety of cotton is currently being quoted at 39,100 per candy (1 candy = 356 kg).

Also considering the fact that, the government is not clear about giving the green signal for resumption of cotton exports from October 1; exporters are not taking new positions in the market, till there is a clear policy decision from the government.

Fibre2fashion News Desk - India

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