The global cotton price has recently peaked at 101.7 cents per pound on 13 June. Potential remains for cotton price to make another run higher during the next couple of months. After the speculative impact in China started to wain, the A-Index price started to weaken. The impetus for the run-up has been concerns over West Texas cotton area and the current drought conditions. Large abandonment is projected, yet even irrigated cotton production was starting to be affected. During the past couple of weeks though, rains have been seen across the West Texas region giving a break to the hot dry weather.
Global cotton price for June has recently weakened further. The trade spat between the United States and other countries, in particular China of late, is pressuring many financial and commodity markets to soften. US cotton futures and the A-Index have weakened in the current week looking to finish June at a much lower level. Cotton prices are projected to strengthen back higher into July and August. The Northern Hemisphere growing season still has months that can make or break the size of the 2018/19 crop. The fourth-quarter cotton price is set to be lower than current levels but higher than last year during the same timeframe.