By admin       2018-01-05

January 04 2018 - The International Cotton Advisory Committee (ICAC) has increased its forecast for Cotton prices – but not by enough to suggest it sees a continuation of the strong run in values which marked 2017. The intergovernmental group pegged at 74 cents a pound its forecast for Cotton prices, as measured by the Cotlook A index of physical values in 2017-18, on an August-to-July basis. That represented an upgrade of 2 cents a pound on the previous forecast, and reflected a downgrade to the forecast for world cotton stocks, on a lower estimate for Pakistani output. However, the forecast signals an expectation that prices will fall from current levels, with the Cotlook A on Tuesday at 89.35 cents a pound, and having averaged some 83 cents a pound so far in 2017-18. The ICAC price outlook came as the committee halved to 220,000 tonnes its forecast for the rise in world cotton inventories over 2017-18, taking the estimate for carryout stocks just below 19 million tonnes. The downgrade reflected a downgrade to 1.9 million tonnes, from 2.06 million tonnes, in the forecast for output in Pakistan – where a somewhat disappointing rate of crop deliveries by producers has raised ideas that growth in output spurred by a $625 million farm support package may not be as strong as had been anticipated. Cotlook itself two weeks ago downgraded by 100,000 tonnes to 1.75 million tonnes its forecast for Pakistan’s Cotton output in 2017-18, although this till represents a rise of 85,000 tonnes year on year on its estimates.

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