Australian cotton growers are holding off, and are not prepared to set prices for this year's crop, said Kim Morrison from Macquarie Cotton.

The price of a bale of cotton in Australia has not breached the $450 break-even mark since September 2004, and is presently hovering around $400.

Australian cotton growers continue to plant cotton till supply of water is available, and meanwhile look forward for market to rally.

The world oversupply of cotton has created a situation wherein the mills are not prepared to buy on any rally that prevails in market.

Fibre2fashion.com