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Cotton consumption is expected to decline
Jul '08
World cotton production is expected to decline by 3% to 25.5 million tons in 2008/09. A major drop in production is forecast in the United States and smaller declines are expected in China (Mainland), Brazil, Egypt, Turkey and Central Asia. Production increases are projected in India, Australia, the African Franc Zone and Pakistan.

Global cotton mill use is expected to decline by 1% in 2008/09 to 26.6 million tons, due to projected slower global economic expansion and higher prices of cotton relative to polyester. World imports are expected to increase by 5% to 8.8 million tons, driven by larger Chinese imports.

World cotton stocks are forecast to decrease by more than one million tons to 11.0 million tons in 2008/09. The largest decline in stocks is expected to occur in the United States, where considerable supplies that accumulated during the previous two seasons will fuel exports.

The Secretariat forecasts an increase in the season-average Cotlook A Index from 73 cents per pound in 2007/08 to 82 cents per pound in 2008/09 (the 95% confidence interval is between 68 and 95 cents per pound).

Click here to view table:

International Cotton Advisory Committee

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