World Cotton Prices Slump Or Affect Next Cotton Season Output

After experiencing a high price without sustainability, world cotton prices are facing sharp adjustments in recent months.

The tension between supply and demand from the 2010-11 cotton season, the world

Supply far exceeds demand, and cotton prices naturally respond.

Supply pressure driven cotton prices have seriously affected the income of cotton growers in many countries.

The International Cotton Advisory Committee, based in Washington, D.C., recently believes that the decline in cotton prices in the current season not only reduces farmers' incomes, but also decreases their attractiveness in comparison with other major crops for the first time in three years.

The situation in India

Domestic cotton is no exception.

Cotton growers in India, especially in Maharashtra, began demanding higher support prices to make up for the loss of income resulting from the sharp drop in cotton prices.

Unfortunately, the India government failed to convince cotton farmers to accept this reality.

Price forecasting

No wonder many analysts have adjusted their price forecasts for 2012.

As for cotton, the biggest market decline is likely.

With the high production of at least three major cotton producing areas, it is not surprising that cotton prices will suffer downward pressure again.

Worse, falling prices and consumer friendly prices are unlikely to stimulate demand, because macroeconomic concerns remain rules and leading indicators.

In the assessment of the International Cotton Advisory Committee, the cotton price of the current season will decrease as cotton output reaches 25 million 140 thousand tons in the 2012-13 cotton season, and the cotton output in the current cotton season will be 26 million 880 thousand tons.

This means that next year's output and demand will match evenly.

Of course, many unforeseen factors may play a role between the present and the next cotton season.

However, it is worth affirming that in the 2011-12 cotton season, world cotton prices will continue to face pressure.

If the whole world

Monetary tensions are beginning to ease.

It is possible to set up stock at the present price.

Of course, weather factors will be the most convincing factor.

World cotton prices will be below 100 cents / pounds, and quarterly average prices will gradually decline in the next two quarters, down to 90-85 cents / pound.