PREDICTIONS cotton prices will rise up to 17 per cent will encourage growers to plant more next year.
Rabobank has tipped the cotton price will jump over the next 12 months, based on smaller production and greater worldwide demand.
Spearheading this is China, which will take more of the world's cotton crop this year.
The news is welcome for growers, who have suffered price falls after rates peaked in March 2011.
Since then, a 55 per cent rise in worldwide cotton stocks kept prices depressed.
Rabobank's Luke Chandler said supply in the coming season was predicted to drop.
Whitton cotton grower and gin director Roger Commins said he was confident Rabobank's predictions were accurate.
"The price has already improved, from $360-$380 (a bale) three or four months ago to $400-$420 a bale last week," he said.
And the belief that it could rise above $500 a bale before the cotton planting season in September would encourage more growers to plant.
Mr Commins said cotton plantings had backed off in the Murrumbidgee Valley this season to about 27,000ha compared to 35,000ha the previous season.
"Of course it depends on the water situation, but the Murrumbidgee is one of the safer catchments and this summer has been ideal for cotton growing," he said.