Cotton growers may not be happy with current world prices. But patience may pay off over the next decade, predicted industry expert Joe Nicosia of Louis Dreyfus Commodites.
In a move that could add more pressure to global cotton prices, China has announced that it will cut 2015 cotton import quotas to the minimum 894,000 tons required under its commitments to the World Trade Organization.
The cotton market has been shrouded in plenty of uncertainty lately, which continues to drive its meandering sideways movement.
Low prices and larger-than-anticipated production cuts will leave Brazil’s cotton export numbers well below forecast, and could dash the country’s status as the world’s third largest cotton shipper.
Based on information contained in USDA’s September World Agricultural Supply and Demand Estimates Report, U.S. cotton production and exports for 2014 will both be down over earlier projections.
December cotton finally broke out to the upside in the past week on expanding volume and rising open interest, with the August 21 close marking the highest level in four weeks.
Twenty-one students from the United States and six other countries graduated from the Texas International Cotton School, held August 4-15 at Texas Tech University.
USDA’s World Agricultural Supply and Demand Estimates for August show forecasted increases in production, exports and ending stocks for U.S. cotton.
With the prices for cotton and polyester converging on the world market, the International Cotton Advisory Committee expects world consumption of cotton to increase five percent to 24.5 million tons in 2014/15.
Texas Tech University researchers have discovered that low-grade cotton made into an absorbent nonwoven mat can collect up to 50 times its own weight in oil, strengthening cotton’s potential use as a natural sorbent for oil spills.