Price for December futures of cotton has been traded around the minimal point for several weeks, namely at the point of 70.57, as informed by Commodity Trading Department of .
Shortage of Chinese demand for cotton has been the main reason of the decline of the asset. China is leader of world export of cotton; shortage of decline has been caused by high storages of natural fiber, which has appeared as a result of the program of agricultural goods storage in the country. Consequently, cotton storages in China amount to almost 8 mln. tons, whereas world stocks have increased to 17.2 mln. tons, which is almost 10% more than last season.
According to the Analytics Team, the price is most likely to keep moving within the range of 68-78 dollars per bale, as the market shows no significant drivers for any kind of movement, uptrend is problematic because of global demand, and downwards the price is getting attractive for purchase.
