External power: Khmer prices will continue to rise and fall in the late to see the weather

According to Jalal Nebo, president of Calcot Cotton Company of the United States, the price of upland cotton will remain strong in the short and long term. In the next three months, the fluctuation range of the ICE** December 2011 contract is relatively narrow, with price lows at $1.15-1.25/lb and highs at $1.35-1.45/lb.

Nieber expects that the 2011/12 ICE** main contract will fluctuate between 1-1.7 USD/lb, and there will be a higher probability of turbulence between 1.20-1.40 USD/lb. It is unlikely that cotton prices will once again soar to $2 per pound.

Another cotton trader, John Chilton, also believes that it is very difficult for cotton prices to rush at $2/lb again, but it will not soon fall below $1/lb. He believes that the price of ICE** over US$1/lb will continue until 2013. The fierce competition between corn, soybeans and cotton will keep cotton prices above US$1/lb for a long time. In the next ten years, the price of corn will increase by 200% and soybeans will increase by 142%. Therefore, it is very difficult for cotton prices to fall.

The two experts said that although cotton demand has been frustrated at the current stage, global cotton supply remains tight and US cotton stocks are still falling. The biggest factor affecting cotton prices this year is the weather. If actual output is lower than expected, or cotton demand unexpectedly increases, the ICE** December contract is expected to rise to $1.60-1.70/lb.