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COTTON: supply trends predicted to reverse

THE LATEST report from the ICAC estimates that world cotton production could decline by 6 per cent in 2015/16, to 24,55m tons, while consumption reaches 24.69m tons, producing an excess in consumption for the first time in five years. It adds, however, that the predicted surplus of about 100’000 tons will make only a small dent in the large existing stockpile. This, together with keener price competition from polyester, is expected to continue eroding the price attractiveness of cotton.


The considerable stockpile of cotton built up by China over the past few seasons is likely to continue influencing the evolution of cotton prices for some time to come.

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