Cotton demand may ease

Cotton demand from China, the world's biggest consumer, may weaken as high costs encourage consumers to switch to cheaper synthetic fibers, said Chen Tao, chairman of Louis Dreyfus (Beijing) Commodities Trading Co Ltd.

Stockpiling by China may keep cotton at about 20,000 yuan ($3,091) a metric ton, Chen said in an interview at a conference in Dalian.

Prices at this level may make cotton a "luxury", and not something cheap and affordable to everyone, said Chen. "It's like when juice is too expensive, people drink tea, and when tea gets expensive, they'll have to make do with just water," he said.