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Global cotton output to expand from better yields
04
Jul '16
In 2016/17, world cotton acreage is expected to contract 1 per cent to 31 million hectares, however, average yield is projected to expand 5 per cent to 735 kg/ha, leading global output to grow 5 per cent to 23 million tons.

According to ICAC, global cotton consumption is forecast to remain at 23.6 million tons in 2016/17 as low prices for competing fibres make cotton less attractive.

“So, while mill use may remain stagnant, world cotton trade volume may increase 1 per cent to 7.4 million tons in 2016/17,” ICAC averred.

In 2016/17, China's imports are expected to decrease by 8 per cent to 947,000 tons as the Chinese government continues to restrict imports in order to reduce its sizeable stocks of cotton.

While, global cotton stocks at the end of 2016/17 are expected to be down 5 per cent to 20.4 million tons as mill use exceeds production by 930,000 tons.

Though the stock-to-use ratio outside of China would be similar to the 36 per cent registered last season, ending stocks in the rest of the world are forecast to rise 3 per cent to 8.7 million tons.

In the 2015/16 season, global cotton output fell 17 per cent to 21.7 million tons, driven by a 9 per cent reduction to 31.1 million hectares in area, while world average yield dropped 9 per cent to 699 kg/ha. (AR)

Fibre2fashion News Desk - India

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