Home / Knowledge / News / Textiles / ICAC foresees uncertain cotton prices in 2017-18
ICAC foresees uncertain cotton prices in 2017-18
03
Aug '17
US-based International Cotton Advisory Committee (ICAC) foresees uncertain cotton prices in 2017-18 despite a projected production increase of 8 per cent worldwide and a rise in consumption by 2 per cent. World cotton trade is projected to decline by 1 per cent to 7.8 million tonnes. India is expected to be the largest producer with a 6 per cent output rise.
 
The ICAC, formed in 1939, is an association of members of cotton producing, consuming and trading countries.
 
The A Index (a proxy for the world price of cotton) in 2017-18 will range between 54 cts/lb (US cents per pound) and 87 cts/lb with a midpoint of 69 cts/lb, which is 13 cts/lb lower than the value in 2016-17.  This follows the large increase of 12 cts/lb from 2015/16 to 2016/17, which suggests that such a drop is not unreasonable, the ICAC said on its website.
 
In 2017-18, world cotton production is projected to increase by 8 per cent to 24.9 million tonnes due entirely to an 8 percent expansion in world cotton area to 31.7 million hectares, which is below the 20-year average of 32.7 million hectares. The world average yield is forecast at 785 kg/ha. World cotton consumption in the same period is expected to rise by 2 percent to 25 million tonnes.
 
India is projected to remain the largest cotton producer in 2017-18 with output increasing by 6 per cent to 6.1 million tonnes. After declining by 3 per cent in 2016-17, consumption in the country is expected to increase by 2 per cent to 5.3 million tonnes in 2017-18. India’s exports may rise by 2 percent to 930,000 tonnes.
 
After falling by 6 percent in 2016-17, China’s production is projected to rebound by 7 per cent to 5.2 million tonnes. A modest 1 per cent consumption increase is projected for the country, the world’s largest cotton consumer, with its mill use reaching 8.1 million tonnes in 2017-18.
 
US cotton production is expected to rise by 10 per cent to 4.1 million tonnes as high prices, sufficient soil moisture in dry land areas and beneficial weather during planting encouraged farmers to expand cotton area by 18 per cent to 4.5 million hectares. While the United Sates is expected to remain the world’s largest cotton exporter, its exports are forecast to decrease by 8 per cent to 2.9 million tonnes.
 
After two seasons of contraction, better expected returns for cotton encouraged farmers to expand cotton area in Pakistan by 9 per cent to 2.7 million hectares. Assuming the average yield rises by 8 per cent to 717 kg/ha, Pakistan’s production is projected to increase by 17 per cent to 2 million tonnes, which is similar to its 15-year average. Pakistan’s mill use is expected to rise by 4 per cent to 2.2 million tonnes, which follows a 13 per cent decrease in mill use in 2015-16 and stagnation in 2016-17.
 
Cotton production in Brazil is forecast to increase by 5 per cent to 1.6 million tonnes as high returns in 2016-17, resulting partially from a 17 per cent increase in the average yield, are likely to encourage farmers to expand cotton area.
 
Bangladesh, Vietnam and China are expected to remain the world’s three largest importers. Bangladesh’s imports are projected to increase by 7 per cent to 1.5 million tonnes, Vietnam’s by 5 per cent to 1.3 million tonnes, and China by 4 per cent to 1.1 million tonnes.
 
Consumption in Bangladesh is projected to rise by 5 per cent to 1.5 million tonnes due to strong domestic and international demand, and Turkey’s mill use is expected to remain stable at 1.5 million tonnes. Australia’s cotton exports are projected to increase by 8 per cent to 760,000 tonnes.
 
World ending stocks are projected to decrease by 1 per cent to 18.8 million tonnes in 2017-18, with increases outside of China offset by decreases in China’s stocks. China’s stocks are expected to decline by 16 per cent to 8.9 million tonnes. Ending stocks outside of China are forecast to grow by 19 per cent to 9.8 million tons, according to the ICAC. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Pakistan’s FBR imposes 5% sales tax on cotton import

Textiles | On 21st Jul 2018

Pakistan’s FBR imposes 5% sales tax on cotton import

Pakistan’s Federal Board of Revenue recently withdrew sales tax...

Bangladesh drafts policy for Tk1,000 cr govt jute fund

Textiles | On 21st Jul 2018

Bangladesh drafts policy for Tk1,000 cr govt jute fund

Bangladesh will set up a Tk10,000-crore Jute Sector Development Fund...

Ahmad A. Al Sa’adi and Kwon Pyung-Oh display a comprehensive Memorandum of Understanding; Courtesy: Saudi Aramco

Textiles | On 21st Jul 2018

Saudi Aramco, KOTRA sign MoU for business cooperation

Saudi Aramco has signed an MoU with the Korea Trade-Investment...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search