Australian Institutions Predict That Cotton Prices Will Stabilize In 2009.

Australia's cotton production will decrease this year, and cotton prices will stabilize or rise in 2009.

Rob Imray, general manager of FarMarCo, said that although the cotton planting area in the United States was about 3 million 750 thousand hectares in 2008, or 15% less than last year, it is the smallest planting area since 1983. However, the structural reform of the domestic market may be a necessary way for many growers to sell cotton.

He said, we expect that the current situation will be improved, and domestic cotton prices will face enormous challenges in a short time.

Judging from the international market, there are many unstable factors at present, which make it difficult to get clear market signals.

These problems have gradually affected the domestic market, resulting in low commercial production for many years, resulting in the weakening of commercial competition among cotton growers.

The relative price relationship between cotton and competitive crops is very important for decision-making.

Mr Imray said that from a long line of view, the balance of international supply and demand is coming back to balance, which will greatly alleviate the troubles caused by short-term instability to the market in 2008.