Cotton is a soft fiber, grows around the seeds of cotton plant


It is the basic resource for thousands of consumer and industrial products

The biggest cultivators of cotton are America, India, China, Egypt, Pakistan, Sudan and Eastern Europe

US have a considerable share in world exports  India and China both fall short of their domestic requirement and are net importers

cottoninc.PRICE TRADE OF COTTON •Cotton prices fell across the board on domestic and international markets •As demand remains extremely weak amid large fiber and yarn inventories •Correction in cotton prices has done •Highest Price 245 Cents/lb •Lowest price 145 Cents/lb Source: Http:// .

Demand .

Reduced by over 400.Demand (Total Demand 24. mills substituting cotton with -synthetic fibers. made cotton storage companies suffer great losses . accounts 30% of Global Cotton (Around a drop of 17% in the month of May 2011) Buyers’ future expectation (Waiting for new crop to come in the market)   Substitution Effect (Result of rise cotton price.000 tonnes) Major factors of low Demand:  Significant fall of Cotton Demand in China.6m tonnes. -notably polyester -and viscose (rayon))  The rapid rise and decline in cotton prices since September 2010.

Supply .

Supply (Total Supply around 24.35m tonnes.8 Millions of metric tons World Cotton Exports: 8. 10.3 Millions of metric tons  Production increased by between 9.6% and 13% as the result of increased production in key countries Improved seasonal conditions Higher plantings   .7% increase) Major factors affected Supply:  Driven to a significant degree by the surging cotton prices • • World Cotton Production: 26.

CONCLUSION  Cotton plays a significant role among the most useful commodities Its expected. price of Cotton will further fall down Cotton and cotton textile industries are central to the economic growth of both developed and developing countries It is the raw material of wealth. industrialization and development    .

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