Polyester prices falling and what it means for cotton

Polyester prices falling and what it means for cotton

For cotton too, the Rabobank forecast a fall in prices ahead – despite nudging higher many of its price forecasts by 1 US cent a pound.

Its estimate of New York futures averaging 70 cents a pound for the last three months of 2017 compared with a December contract price of 75.45 cents a pound.

“Macro outlooks appear to darken cotton demand,” the bank said, flagging “concerns” over China and Europe which “if realised, could pressure consumer incomes”, so undermining clothing demand.

Cotton faces tougher competition too from artificial fibres, whose values have been undermined by the drop in oil prices.

“With polyester prices falling – down 7 cents a pound month on month to 51.44 cents a pound… – manufacturers may shift inputs towards synthetics.”

https://www.rabobank.nl


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