BIRKENHEAD, United Kingdom — November 21, 2011 — Cotlook's latest review of world supply and demand for long staple cottons, foresees increased production and decreased consumption during the 2011/12 season, resulting in a substantial net surplus of supply.

Production is placed at 639,000 tonnes, which is about 130,000 tonnes more than projected consumption.This season's and last season's surpluses combined more than offset the sharp deficit that accumulated in 2008/09 and2009/10, which was accompanied by record high prices.

The implication is that prices will stay under downward pressure in the immediate future.

Cotlook's latest quarterly Long Staple Update is obtainable from editor@cotlook.com.


Posted on November 29, 2011

Source: Cotlook Ltd.