Global cotton will oversupply prices will be under pressure

Market traders here expect that the global cotton market will have an oversupply due to reduced demand and the supply of the world's largest cotton growing area will increase.

It is reported that in the fall of this year, cotton production in Lubbock, Texas, and Punjab, India will surpass expectations and prices will be under pressure. Many traders and investors expect cotton prices to test a five-and-a-half year low hit earlier this year.

The US Department of Agriculture estimates that global cotton stocks will fall to 106.3 million bales (480 pounds per bale) in the next crop year (starting on August 1). Some analysts said that this figure does not fully consider potential strong output.