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Soaring supply & dropping demand weaken cotton prices

23 Nov '06
1 min read
Downtrend in the cotton market is expected to persist during December 2006 trough January 2007, as demand goes down, prices lower.

Export orders are likely to come-by only around February next year, which will hike cotton prices for domestic as well as international trade.

Large reserves at the domestic industry have forced the prices to drop.

Analysts predict that cotton supply will soar almost 50 percent during the next two months which will further weaken the prices.

Average price decline of all category cotton is around 7 percent adversely affected by abundant supply and meager demand.

However, industry is optimistic and believes that the market will recover before the arrival of new crop.
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