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International cotton prices forecast to be higher in 2008/09
03
Jun '08
The ICAC forecasts a season-average Cotlook A Index of 79 cents per pound in 2008/09, 6 cents higher than the expected 2007/08 average. This projected price increase is due mainly to an expected decline in the stocks-to-mill use ratio in the World-less-China (Mainland).

World cotton production is projected to decline slightly in 2008/09 to 26.0 million tons. Declines in production are forecast in the United States, Brazil, and Turkey due to competition from grains and other commodity. These reductions could offset increases projected in Asia, West Africa and Australia.

Global cotton mill use is expected to remain stable at 26.7 million tons in 2008/09 due to slower world economic growth and higher prices of cotton relative to polyester.

World consumption is expected to exceed production in 2008/09. As a result, world ending stocks are forecast down by 6% to 11.3 million tons.

World imports are expected to increase by 5% to 8.8 million tons in 2008/09 due to projected higher imports by China (Mainland). Imports by the rest of the world are projected down for the second consecutive season.

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International Cotton Advisory Committee (ICAC)


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