COTTON
In recent weeks, prices have fallen substantially due to trade tensions. On 6 July, the spot price was USD 79.4 cents per pound, which was down 6.9% from the same day last month. However, the price was 4.0% higher on a year-to-date basis and was up 19.4% from the same day last year. Prices dropped recently due to concerns over the impact of the 25% tariff China imposed on U.S. cotton exports effective 6 July, which will likely lower demand. China, the world’s largest consumer of cotton, strongly affects markets, and prices are unlikely move significantly going forward. Our panelists expect prices to average USD 85.9 cents per pound in Q4 2018. In Q4 2019, panelists expect prices to average USD 79.8 cents per pound.
In recent weeks, prices have fallen substantially due to trade tensions. On 6 July, the spot price was USD 79.4 cents per pound, which was down 6.9% from the same day last month. However, the price was 4.0% higher on a year-to-date basis and was up 19.4% from the same day last year. Prices dropped recently due to concerns over the impact of the 25% tariff China imposed on U.S. cotton exports effective 6 July, which will likely lower demand. China, the world’s largest consumer of cotton, strongly affects markets, and prices are unlikely move significantly going forward. Our panelists expect prices to average USD 85.9 cents per pound in Q4 2018. In Q4 2019, panelists expect prices to average USD 79.8 cents per pound.
WOOL
Wool prices rose throughout most of June, likely on solid demand from key consumer China and tight supply. However, prices pulled back in early July as the new selling season began. On 6 July, wool traded at AUD 2,027 cents per kilogram. The print was 0.4% higher than on the same day last month and was up 15.2% on a year-to-date basis. Moreover, the price was 33.0% higher than on the same day last year. Prices are seen dipping from their elevated levels going forward, as the new season brings fresh supply to market. FocusEconomics panelists project an average price of AUD 1,675 cents per kilogram in Q4 2018. Prices are projected to ease further, to AUD 1,624 cents per kilogram, in Q4 2019.