Cotton futures traded around 87 cents per bushel in early May, not far from an over one-month high of 89 cents hit at the end of April, on forecasts for some rain in the key growing region of West Texas. Over the past two weeks, prices of cotton contracts have been supported by the dry weather in the region. Meanwhile, a weaker dollar and a sustained upward move in important grains limited losses. The USDA expects world cotton production to rise nearly 5% from the year before in 2021/22, to 119.5 million bales. At the same time, world cotton consumption is expected to continue rebounding in 2021/22, rising 4.1% from a year earlier to 122 million bales, pushing world stocks down by 3.2 million bales.
Historically, Cotton reached an all time high of 1349 in September of 2020. Cotton - data, forecasts, historical chart - was last updated on May of 2021.
Cotton is expected to trade at 86.28 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 77.00 in 12 months time.