World’s cotton stock dwindling
Cotton prices were unusually volatile during March, falling from US$0,90/lb at the start of the month to 0,74/lb towards the end of the month.
The International Cotton Advisory Committee (ICAC) predicts that prices will stabilise at 0,74/lb, which is up 0,15 from last year. Price prospects for 2008/2009 also look favourable, with the ICAC currently forecasting an average index of US$0,80/lb.
International production is predicted to increase 3% to 26,9 million tons, while consumption is estimated to increase 1% to 27,5 million tons, in comparison with 2% in 2007/2008 and 7% in 2006/2007. The ICAC ascribes the lower projected growth to slower world economic growth and the increase in cotton prices relative to polyester.
World ending stocks are expected to decline for the second consecutive year in 2008/2009 to about 11 million tons, a 5% drop over 2007/2008 and 13% over 2006/2007.The third local estimate recently released is similar to last month’s at 53 427 lint bales, down 5% from the previous season. It’s the smallest crop in more than 40 years. –Glenneis Erasmus
