Wool price recovers while cotton price slides
Australia’s Department of Agriculture, Fisheries and Forestry (ABARES) is predicting lower world cotton prices next year, while wool should see an improvement in the short-term.
The commodity forecaster says China is holding half the world’s cotton stocks, and that stockpile has kept prices relatively high over the past three years, despite production outstripping consumption.
ABARES is predicting a mixed outlook for wool, with prices higher in the short-term but declining by 2018-2019.
The Eastern Market Indicator (EMI) has already strengthened through the first half of 2013-2014, passing 1,140 cents per kilogram in December for the first time since May 2012. Large offerings have kept a lid on further price rises.
ABARES expects the EMI to creep up once again in the short-to-medium term, averaging around 1,160 cents per kilogram for 2014-2015. It should remain at around 1,155 cents per kilogram in 2015-2016.
As grazers restock and production recovers, the EMI is forecast to decline to around 1,133 cents per kilo by 2018-2019. F
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