Cotton futures were trading around 144 Usd/Lbs, down almost 9% from an 11-year high of $158 hit in early May, on prospects of higher supplies amid favorable weather in top growing regions. Traders noted that the US crop was 54% planted as of May 22nd, running ahead of the average pace for that date and offering hope of solid yields. At the same time, demand for cotton is seen weakening among the stockists and traders amid high inflationary pressures. Meanwhile, the USDA lowered its forecasts for global cotton supplies in 2022/23, as smaller beginning stocks more than offset a 2.6-million-bale increase in production, while consumption and ending stocks were also projected down.
Historically, Cotton reached an all time high of 227 in March of 2011. Cotton - data, forecasts, historical chart - was last updated on May of 2022.
Cotton is expected to trade at 145.63 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 156.18 in 12 months time.