Saturday, 16 April 2011

Textiles: Rising Cotton Prices May Begin to Fall

Textile cotton prices may begin to fall if the current projected output for this year is correct, there should be surplus of cotton totally approximately 9 million bales. Currently, however, the whole global cotton market is in chaos. New York Future's prices for May are at just over $2. Turkey’s TariƟ Cotton Union is exporting cotton bales rather than sell them domestically due to the large difference in market price. China has been drastically increasing the amount of cotton exported over the past few years. India has banned international exports, so Pakistan has been buying from Uzbekistan. Some reasons given for the increase in the price of cotton include conflict in the north African and Gulf regions, natural disasters in the last couple years in cotton-producing countries such as Pakistan and Australia, and an increase in demand. However, this year, countries such as Pakistan are expected to have a much better crop production, and cotton production worldwide should be able to meet worldwide demand.

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