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US share of worldwide cotton exports to grow in current year
13
Feb '09
Stock holding policies in India and delayed government marketing in other countries, primarily in Central Asia, have provided an opportunity for U.S. cotton exporters. The U.S. share of total world exports will rise considerably this year, even though U.S. exports will be below last year's level.

In light of higher prices and input costs earlier this season, Central Asian governments have so far been unwilling to allow sales at the current depressed world prices. Compared to last year, exports from Central Asian countries are forecast down 28 percent and stocks up nearly 50 percent.

In India the increased Minimum Support Price has raised domestic prices and dramatically reduced the competitiveness of Indian exports. This situation will likely remain until the government lowers the price at which it will release stocks. Exports from India are forecast down 50 percent and stocks up almost 40 percent from last year.

The build-up of these stocks has placed a greater share of exportable supply under government control. This has heightened uncertainty and may exert downward pressure on prices latter in the season.

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Cotton Council International


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