Production Prices: Reserve Works and Cotton Stocks

production prices: It comes as prices have steadily climbed throughout the year, the second consecutive season where global consumption would exceed production, according to Australian Broadcasting Corporation. Prices have also been supported by reports of global cotton stocks decreasing, as China which holds an estimated half of the worlds cotton stocks in reserve works through its stockpiles. ABC Rural Clint Jasper Related Story Cotton forecast double last year and growing as rain falls Map Rockhampton 4700 Attractive cotton prices, cheap water and strong overseas demand has seen Australian cotton growers double their plantings this season. In the year to date, Chinese cotton imports were down 42 per cent compared with the previous year, leaving Pakistan, Bangladesh, Indonesia and Vietnam to pick up the excess demand. Between March and August next year, China will be looking to start reserve auctions again, but they've probably already sold the highest quality cotton first, Ms Donlan said. Chinese officials recently announced a cutback in imports, in an effort to further reduce stockpiles, but Commonwealth Bank of Australia CBA agri-commodity analyst Madeleine Donlan is tipping that might not last long. (news.financializer.com). As reported in the news.