WORLD PRICE OUTLOOK REMAINS FIRM ASSTOCK LEVELS FALL

摘要

As the near ten-year pre-occupation with the record buildup of stocks by China ends, the world cotton industry faces new uncertainties as a result of 1) the explosion in the size of the U.S. crop, 2) an overestimation of world stocks outside of China,3) the significant drawdown in Chinese Reserve Stocks, and 4) the recovery in world polyester prices. In addition, there were the weather anomalies of 2017 in both India and the U.S. Furthermore, yield reductions occurred in high quality crops of Australia and Brazil as well as in China. Thus, the price uncertainty facing the cotton world market has expanded.