Cotton prices down 29%
Staff -- Home Textiles Today, 7/30/2001
WASHINGTON — With world cotton production booming, far outpacing demand, international cotton prices continued to deteriorate in June to new season lows, and the Cotlook A Index, a measure of international prices, dropped beneath 47 cents a pound, the International Cotton Advisory Committee (ICAC) reported.
At the low level, cotton prices are now 19 cents, or 29 percent lower than in December, when the Cotlook A index reached 66 cents per pound.
Driving the price erosion, world production is expected to increase by 6 percent, to 20.2 million tons next season, exceeding world consumption by about 300,000 tons.
"With supply anticipated to exceed demand in 2001/2002 and in 2002/03, prices are likely to remain depressed," said ICAC.
Supply/demand forecasts, said ICAC, suggest an average price of 54 cents for this cotton season, three cents beneath original projections.
| 1999/00 (actual) | 2000/01 (proj.) | 2001/02 (proj.) | |
| Production | 18.71 | 19.02 | 20.21 |
| Consumption | 19.83 | 19.74 | 19.92 |
| Exports | 6.14 | 5.74 | 6.30 |
| Ending Stocks | 8.80 | 8.07 | 8.36 |
| Cotlook A Price Index | $0.53 | $0.57 | $0.54 |
| Source: International Cotton Advisory Council (ICAC) | |||
