COTTON PRICES ON THE BREAK OF THE SESONS

In the season 2005/2006 ended on the 31st of July, the world cotton prices were subject to big fluctuations. The lowest prices were noted by the end of August 2005 (ca.52 USc/lb) and the highest ones in the second half of February 2006 (ca. 62 USc/lb). A decisive impact on the formation of prices in the season 2006/2006 had: still very big world cotton stocks on one hand, and on the other - record-high Chinese imports of cotton fibre. In result, average medium staple cotton prices in the past season were higher by 7,5% in comparison to the 2004/2005 season. The new 2006/2007 season, which began on the 1st of August 2006, started with a jump increase of medium staple cotton price - by 6,5%. The cotton world entered the new season with fibre prices on the level higher by 8% than a year ago.

Season	Index A	Index A (NE)
2004/2005 (season average)	52,20 UScents/lb	53,50 UScents/lb
2005/2006 (season average)	56,15 UScents/lb	57,05 UScents/lb