Home / Knowledge / News / Textiles / Apex bank cautions of runaway cotton prices
Apex bank cautions of runaway cotton prices
24
Dec '10
Cotton demand is experiencing pressure from soft developed economies which indicate that investors should not get swayed with the price rallies of the fibre. This was revealed by the National Australia Bank while the cotton prices touched a record high level. The bank accepted that outlook for prices of cotton in 2010-11 were strong which was particularly because of the Chinese cotton consumption lagging behind local production for the last 12 consecutive years.

Market forces are likely to provide a firm ground for prices in China, which is the leading producer, consumer as well as importer of cotton, as revealed by a top Australian bank official. For the third consecutive trading day, the New York exchange limits permitted the cotton prices to increase up to the maximum by adding 5.0 cents or 3.2 percent to touch a record high level of 159.12 cents per pound.

Chinese cotton factories and textile producers are required to pass some of the enhanced cost of cotton to the end users in order to stay operational. Again, high unemployment rates have reduced the retail spending on clothing in large developed countries during the last six months. Australia, which is having a trade boom, has been experiencing a declining trend in the retail revenue in the clothing and footwear sector for the last four months.

Currently, the market is ignoring the demand and is being driven by apprehensions of fall in cotton supply. Apprehensions about cotton supply are mostly concentrated in China where the production is about to decline by about 6 percent in 2010-11, in Pakistan where floods have cut down the cotton production by 8 percent and also in US where storms in Texas have destroyed the expectations of better output.

On the other hand, Brazil is anticipating a hike of 45 percent in cotton supply thereby raising the country's harvested area to 1.22 million hectares, which was caused by the high prices which had encouraged more sowings. National Australia Bank projected the cotton output in Australia which is the third leading exporter of cotton to touch 3.8 million bales in 2010-11.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: AWI

Textiles | On 20th Jan 2017

Australian wool EMI at highest ever level in Au$ terms

The Eastern Market Indicator (EMI) managed to forge ahead by a...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Apparel/Garments | On 20th Jan 2017

Fashion etailer Fynd to offer Yepme product offerings

Online fashion retailer Fynd has signed a partnership with Yepme,...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Judy Frater
Somaiya Kala Vidya

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

Ritu Kumar
Label Ritu Kumar

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

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search