Australia : High Grade Cotton In Demand

Demand for high-grade cotton is surging with evidence there is a reasonable amount of third quarter demand yet to be filled.
 
Pete Johnson, Weil Bros, Toowomba said given this supply tightness, it is difficult to see too much more downside from here, particularly given the ongoing Northern Hemisphere weather concerns.

In addition US dollar weakness effectively makes imports of raw cotton cheaper in local currency terms for consuming nations.

Mr Johnson said all other things being equal this should underpin demand providing support for the market.

"To put things in perspective the US dollar Index fell to its lowest level since October 1998, at that time cotton futures were trading in the seventies."