Global Cotton Roundup – July 2
Here’s a look at some of the top stories impacting the global cotton market this week.
Despite optimism regarding Chinese imports, the International Cotton Advisory Committee cut its forecast for cotton prices for a second consecutive month, citing raised expectations for world inventories. The organization dropped its forecast for the Cotlook A index by five cents to 82 cents a pound.
At the end of June, China is estimated to hold approximately 11.7 million tons of cotton in reserve – nearly 60 percent of the world’s cotton stocks. However, while consumption in China is expected to grow during next season, a strong preference exists for high quality cotton, making it unlikely that the government will be able to quickly draw down its reserve without offering significant discounts.
The Better Cotton Initiative (BCI) has entered an agreement with Good Cotton Practices Association (IPUD) to implement the Better Cotton standard in the Turkish cotton industry. IPUD will manage the Better Cotton activities in Turkey with administrative support from the BCI. The non-profit organization collaborates with stakeholder organizations to define better and more sustainable ways of growing cotton.