By admin       2018-04-04

Cotton prices will edge up to their higher in five years next season, the International Cotton Advisory Committee forecast, as it cut its forecast for inventories to the lowest since 2011-12. The intergovernmental group, in its first forecast for cotton prices in 2018-19, which starts in August, saw them averaging 84 cents a pound, as measured by the Cotlook A index of physical values. That would represent a small improvement from the price expected for this season, which Cotlook hiked by 5 cents a pound to 83 cents a pound. The group failed to elaborate on the reasoning behind the upgrade, although it follows consistently higher prices than many commentators had envisaged earlier in the season, with the Cotlook A closing last week at 89.95 cents a pound. The 84 cents-a-pound cotton price the ICAC forecast for next season would also be the highest since 2013-14, when prices averaged 91 cents a pound, before tumbling to 70 cents a pound two seasons later as China curtailed imports and focused on drawing down bloated state inventories.

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