Home / Knowledge / News / Textiles / World cotton prices surge to highest since May 1995
World cotton prices surge to highest since May 1995
02
Oct '10
International cotton prices have increased almost continuously since April 2009. The rise in prices has been particularly steep since August 2010. The Cotlook A Index reached 115.60 U.S. cents per pound on September 29, 2010, 80% higher than at the same date last year and the highest value reached since May 23, 1995.

The recent firm increase in cotton prices is mainly the result of strong market fundamentals rather than speculation. World cotton stocks fell by 24% to 9.0 million tons in 2009/10. This marked the end of a five-year period of high stocks. World cotton production is expected to rebound by 16% to 25 million tons in 2010/11, encouraged by the significant rise in prices experienced last season.

Global cotton mill use should continue to recover, however more slowly than in 2009/10 due to limited available supplies and high prices of the fiber. As production and consumption are forecast to roughly balance in 2010/11, world ending stocks are not expected to increase significantly.

These perspectives, added to concerns about the damage caused to Pakistan's 2010/11 cotton crop by the August floods, expected harvest delays in China and India, and concerns about restrictions in shipments by a major exporting country, have supported cotton prices in the first two months of 2010/11.

The ICAC (International Cotton Advisory Committee) Price Model forecasts a 2010/11 season-average Cotlook A Index of 90 cents per pound, 15% higher than last season and the highest since 1994/95. The 95% confidence interval extends from 78 to 106 cents per pound. This forecast suggests that cotton prices could decline from the current highs later in the season.

However, external factors such as the uncertain global economic outlook, possible government measures affecting global cotton trade, and price competition with other fibers could affect the degree of increase in prices in 2010/11.

ICAC (International Cotton Advisory Committee)


Must ReadView All

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Mark Paterson
Technical Absorbents Ltd

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

Lynda Kelly
Suominen Corporation

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Ritu Kumar
Label Ritu Kumar

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

Igor Chapurin
Chapurin

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

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