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Cotton prices forecast

July 20th, 2020 / By: / Industry News

Cotton prices will remain weak in the 2019/20 and 2020/21 seasons as supplies of cotton outstrip demand and surpluses grow, according to a report in Issue 200 of Textile Outlook International from the global business information company Textiles Intelligence.

The average price of cotton has been falling since the beginning of 2018/19, and in 2019/20 it is forecast to fall further to 76 US cents/pound, which is 11 US cents/pound lower than the average for 2018/19.

One factor affecting the price of cotton is weak demand caused by uncertainty arising from the US-China trade war. Until relations between the two countries improve, demand for cotton will remain suppressed and so will the cotton price.

The continued weakness in cotton prices has been reinforced by an increase in the size of the global stockpile which has reversed in recent declines. Surpluses are growing in the main producing nations, and stock levels at the end of the 2019/20 season (July 31, 2020) are expected to be 1.3% higher than they were at the beginning (August 1, 2019).