Cotton futures on ICE traded around $1.2 a pound in late November, close to high levels not seen since June 2011 amid tight supplies owing to higher input costs and logistics snarls coupled with rising global demand. Meanwhile the USDA in its latest monthly report estimated global production to go up due to better crop yields in Brazil, Australia and Pakistan. Elsewhere, it is reported that the US is looking to expand cotton exports to Bangladesh, the world’s second largest importer of cotton whereas in Pakistan, cotton arrivals to ginneries reached over 6.8 million bales, up 70% from a year earlier as of November 15th. Also, there is increasing speculation that India is considering measures to restrict exports to ease soaring domestic prices.
Historically, Cotton reached an all time high of 1349 in September of 2020. Cotton - data, forecasts, historical chart - was last updated on November of 2021.
Cotton is expected to trade at 91.99 USd/Lbs by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 99.33 in 12 months time.