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Cotton growers hold on to stocks till prices rise
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Cotton growers hold on to stocks till prices rise
13 Jan '06
1 min read
Australian cotton growers are holding off, and are not prepared to set prices for this year's crop, said Kim Morrison from Macquarie Cotton.
The price of a bale of cotton in Australia has not breached the $450 break-even mark since September 2004, and is presently hovering around $400.
Australian cotton growers continue to plant cotton till supply of water is available, and meanwhile look forward for market to rally.
The world oversupply of cotton has created a situation wherein the mills are not prepared to buy on any rally that prevails in market.
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