“Moreover, with continuing demand from China, the world’s biggest importer of cotton,
coupled with low stock levels at leading exporter the United States
will lead to continuing price rises in the near future…However, the upward curve may be interrupted by further dips, thanks
to continued concerns over global economic growth and the instability
of foreign exchange markets. Calling the upward trend in pricing more
sustainable than other recent increases, Rabobank said price increases
were necessary to encourage farmers in the United States and Brazil to
plant more cotton and ease the current shortages”
.And demand is likely to be boosted further by shortages in flood-hit
Pakistan as well as in China where this year’s crop levels have been
lower than expected. Rising prices are sure to mean increased prices
for clothing in major markets like the United States and Britain,
particularly in the low-margin, budget clothing sector which is more
exposed to such price volatility ..
Date:10/27/2010
Source:www.sfgate.com