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.
Weighed down by unexpected announcements from China, cotton prices continued to trend lower and confusion reigned, as traders attempted to decipher the actual Chinese cotton policy.
This is not a good time to be trying to sell cotton. Nothing will appear relatively attractive at this point, but growers nevertheless need to carefully consider their options.
Apparel manufacturers from eight countries will get a good look at U.S. cotton yarn and fabric production during Cotton Council International’s 2014 COTTON USA Western Hemisphere Uniform Manufacturers Tour.
The Cotton Board’s producer members recently participated in a “Segment Swap” program designed to give them a better understand of how cotton importers make their sourcing decisions.
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 current trading range continues, as the market analyzes the impact of flooding in the U.S., continued dryness in Australia and the first initial official announcement by the Chinese government with respect to its new cotton policy.
The cotton market has been shrouded in plenty of uncertainty lately, which continues to drive its meandering sideways movement.
When folks in the cotton industry say polyester stinks, they now have the research to back the statement up.
USDA’s September World Supply Demand report gives us no reason to believe that the narrow 62 to 72 cents trading range will change in the coming month. But the market will likely draw its direction from Mother Nature in the coming weeks.