International cotton prices were extremely volatile during the last five seasons, while remaining well below the average since 1973/74 of 70 cents per pound. The Cotlook A Index collapsed to 35 cents per pound in October 2001, the lowest since early November 3972, and rose to 61 cents at the beginning of the 2003/04 season. The unexpected and abrupt reduction in the production estimate for China (Mainland) in September 2003 resulted in a large increase in projected net imports by China (Mainland). This triggered an explosion in cotton prices. In mid-October, the Cotlook A Index surpassed 70 cents for the first time since July 1998. In November 2003 it reached a peak of 79.75 cents per pound, the highest since November 1997, and averaged 76,75 cents.Prices dipped about 3 cents in December. The season-average during the first half of the season is 70.7 cents per pound. During the last 23 seasons, the highest monthly average of the Cotlook A Index occurred eight times during the first month of the season (August) and six times during the last month of the season (July); it never occurred in October or in November.
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