In view of the growing cotton output worldwide, specially from India, Pakistan and China, besides plummeting prices, Australian cotton growers have started piling up stock for prices to go up.
Already, the above countries have forecast above average to bumper cotton output.
Leading cotton agency for India has announced that the country's output will go up from 18 million bales to 21 million bales, this year.
Cotton markets in Pakistan have also been witnessing subdued prices even as fresh stocks hit markets. Record out put provided the crops withstand worms and adverse climatic conditions may give hopes for a repeat this year too, as per industry view.
Generally, price of Aus $330 per cotton bale prevails, which is way below the production cost, says Kim Morrison from Macquarie Cotton that has led growers to hold on to stocks in anticipation of better prices.
He also expects Australian cotton output at 2.9 million bales this year.
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