Mills Slow to Buy, but ELS Is Poised for Growth

摘要

Trying to keep up with the volatile market for extra-long staple (ELS) cotton during the past 18 months has been similar to riding a rollercoaster. Prices for American Pima have probably never moved upward so rapidly, only to be followed by a similarrapid descent in prices. Mill prices have moved from the $1.35/ lb range in March 2010 to a record of more than $3 in February 2011, and back below $2 by December. The steep escalation of prices began soon after the end of the 2010/11 crop year, when worldwide ELS stocks were at perhaps an all-time low in regards to stocks to use. Mills were operating on full schedules, and some of the largest spinners were afraid they would not be able to secure adequate supplies for future needs. A buying spree beganaround October 2010. By the time the current and just harvested 2011/12 crop was being planted in March/ April, almost 50% or 314,000 bales of the expected American Pima cotton production had already been committed to spinners around the world.