PRESS ROOM
Strong fundamentals drive cotton prices higher
Friday 15th October '21
Cotton prices attained a 10-year high at the start of October. Cotton’s price rally is being driven by unfavourable weather events in the key US growing areas coupled with strong demand from China. Added to that, rising crude oil prices are making synthetic fibres more expensive than cotton. The US Department of Agriculture (USDA) estimates a global supply deficit of 4.6mn bales for the 2021/22 crop year after a deficit of more than 7mn bales in the previous crop year. Demand has now recovered from its pandemic-related slump in 2019/20 and is expected to exceed its pre-crisis level this year.