South African cotton prices are still declining, despite the second largest cotton yield on record.
According to the latest report by Cotton South Africa (Cotton SA), global cotton production in 2019/2020 was forecast to reach 27,2 million tons. This is 6% higher than the previous season.
Despite the yield being the second largest production volume on record, a downward trend could be seen in cotton prices. This downward trend is due to the ongoing trade dispute between China and the US, resulting in a lacklustre economic environment.
According to the International Cotton Advisory Committee (ICAC), the average global price for the 2019/2020 season was expected to be between US66c/lb (about R22,30/kg) and US102c/lb (R34,47/kg).
The current average price for cotton was around US81c/lb (R27,39/kg).
Read the full article on Farmer’s Weekly