EIU predicts cotton and wool will fall
ANALYSTS from the Economist Intelligence Unit (EIU) forecast that cotton and wool prices will fall again this year.
The two commodities are both victims of falling demand and rising production, say the analysts.
Uncertainty about US and Chinese production will offer some support to cotton prices, but the EIU says demand is down.
It forecasts world cotton consumption to total 2.25 million tonnes in the 1998-1999 season, 9% lower than in 1997-1998.
Wool consumption is also falling, but production has been increased because of low prices in New Zealand and Australia, the leading exporters.
- Financial Times 16/04/99 page 26