Futures news, cotton. Cotton has been within 87-94 price range for a long time, and quitting this range presupposes breaking the current balance between supply and demand. Market is supported by higher sales in the USA, and bearish factors, such as rising stocks and low consumption, remain the same. According to CFTC, the number of short-term speculative sales is rising.
As explained by the Analytics Team of Commodity Trading Department of , at the end of 11-12 season cotton stocks amount to 13,58 mln.tons. This season record yield of 34,5 mln. bales is expected in India, but the volume of cotton entering domestic market is falling.
Predictions about next season’s production and construction are also positive: production will prevail over construction despite the expected shortage of production areas, lower production, and higher consumption. Next season ending stocks may rise from 13,09 to 14,54 mln.tons.
