International cotton prices are up 10-14% compared to the similar period a year ago, following an upward trend in recent months, as world stocks tighten, as a result of estimates for global production deficit in 2016/17. Cotlook A index prices rise 3,55 cents a pound this week, at 79 cents a pound. So, current index price is raised by 10 cents a pound compared to the same week of previous marketing years 2015/16 and 2014/15, according to International Cotton Council. New York futures climbed at 69 cents a pound, making an annual rise of 10%. It is noted that the international price of Cotlook A index currently stands at 79,10 cents per pound, equivalent after conversion and efficiency calculation of unginned (raw) cotton at 33%, to 0,53 euro per kilogram for Greek cotton producers.
Regarding the balance sheet of production, according to the latest estimates of the International Cotton Council, global production is expected to stand at 22,43 million tons in 2016/17. This year’s production is deficient, since the worldwide consumption is estimated at 23,78 million tons, resulting in a reduction of global stocks at 17,95 million tons from 19,31 million tons in 2015/16. It is noted that China still owns more than 50% of world cotton stocks, which at the end of the current marketing year are expected to fall to 9,58 million tons from 12,91 in 2014/15.