Cotton Fell, Is It Ready for Rebound?
Cotton prices were down today, but may yet rebound in the near future as dry weather in India is expected to reduce nation’s exports of the commodity. Precipitation was 81 percent below the 50-year average in Gujarat, the major growing region. More than 50 percent of India received little or no rain and the planting period is coming to an end. That means that it may be too late for planting when rains would finally come.
The expectations of lower supply from India may boost cotton prices that have dropped 23 percent in New York last year. The prices were down as global demand waned. China, the biggest consumer, reduced its imports as it already has vast inventories of the crop. International Cotton Advisory Committee cut its estimate for global demand to 23.17 million tons in the year starting August 1 from 23.53 million estimated last month.
Cotton fell 0.42 percent to $0.7540 per pound on CBoT yesterday.
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