ICE #2 Cotton – The Dragon Wears Cotton
ICE #2 Cotton prices peak in May 2018 – Rabobank’s base scenario maintains a bearish short-term outlook into Q4 2018, before prices recover through 2019. Large market developments lay ahead, including US-China trade tensions, additional Chinese import quotas, and the US crop harvest. Will the US be able to provide enough 2018/19 exports to help satisfy 4% growth in global consumption? We outline price & fundamental scenarios in the event of both ‘yes’ and ‘no’. Global demand growth is forecast to remain strong through 2018/19 – Rabobank anticipates a new trade landscape and for global trade flows to shift considerably.
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Where to go from here
Charles ClackCommodity Analyst Read more
RaboResearch Food & AgribusinessPO Box 17100 (UC 053) 3500 HG Utrecht, The Netherlands