Home / Knowledge / News / Textiles / Cotton prices to remain strong in 2011/12
Cotton prices to remain strong in 2011/12
Apr '11
Global cotton production is expected to rise by 12% to a record of 27.4 million tons in 2011/12, driven by an expansion in plantings in most producing countries.

However, the projected increase in production is relatively small considering the doubling of prices experienced in 2010/11. Competition from food crops and limited resources (including land, seeds, water, and equipment) are preventing cotton area from rising further in 2011/12.

Rising cotton supplies will feed demand in 2011/12, but high prices and competition from chemical fibers are expected to limit growth in mill use to 3%.

World cotton production is projected to exceed mill use in 2011/12 by 1.8 million tons. As a result, ending stocks are projected to increase to 10.1 million tons. The world ending stocks-to-use ratio is projected to rebound from 33% in 2010/11 to 40% in 2011/12, still well below the ten-year average of 50%.

The International Cotton Advisory Committee - ICAC Price Model forecasts a 2011/12 season-average Cotlook A Index of $1.38/lb. The 95% confidence interval extends from $1.19 to $1.59 per pound. This forecast implies a 15% decline with respect to the 2010/11 expected average of $1.62/lb, but would remain considerably higher than the ten-year average of 60 cents per pound prevailing from 2000/01 to 2009/10.

However, caution must be exercised since all commodity markets are subject to great uncertainty. As with any model, the ICAC Price Model is based on a limited number of explanatory variables. Furthermore, the explanatory variables are themselves preliminary estimates or projections obtained under imperfect information.

International Cotton Advisory Committee - ICAC

Must ReadView All

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

Interviews View All

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Nuno Venda

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

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search