World cotton prices fell in recent weeks, mostly due to an expected 43 percent rise in global cotton stocks this year and a smaller anticipated boost in 2012/13, an international farm group said on Friday.The International Cotton Advisory Committee (ICAC), secretariat said in a monthly report that by the end of July 2013, world cotton stocks are expected to reach the highest stocks-to-use ratio since 1998/99.
Rain in Texas and uncertainties surrounding troubled European economies also weighed down prices, ICAC said.The drop in prices should send world cotton output down by 7 percent to 25.1 million tonnes in 2012/13. Lower prices will spur a 3 percent boost in mill use, but global trade is seen down 8 percent at 8.1 million tonnes, the group said.Cotton prices are expected to stay down in 2012/13. As China appears poised to continue building its national cotton reserve, uncertainty could also lead to greater price volatility, ICAC said.