World cotton production is skyrocketing to 26.1 million tons in 2004/05 (up 26 percent), outpacing world consumption (up 9 percent) by an estimated 2.9 million tons, the highest gap in twenty seasons.
The Cotlook A Index is forecast to average 53 cents per pound in 2004/05, down fifteen cents from a six-year high in 2003/04. The current level of international prices implies a reduction in world production in 2005/06.
World production is forecast to decline to 23.4 million tons in 2005/06, down 2.7 million tons (10 percent) from the record this season, but still the second largest crop on record.
World consumption is projected to climb to a record 23.7 million tons in 2005/06, up half a million tons (2 percent).
China (Mainland) remains the driving force behind world cotton mill use. Cotton consumption in China (Mainland) is expected to reach 8.6 million tons in 2005/06, up 5 percent from this season, exceeding anticipated production by 2.8 million tons. Mill use in the rest of the world is expected to reach 15.1 million tons, expected increases in India and Pakistan offsetting declines in other countries, mostly developed.
China (Mainland) is the main beneficiary of the abolition of quotas on textile and apparel trade among WTO members since January 1, 2005. Safeguard petitions to limit the growth of imports from China (Mainland) to developed countries are multiplying in numerous textile categories, as allowed until 2008 under WTO rules. An appreciation of the yuan, if it occurs, would benefit China's competitors on the export markets, without stemming the flows into import markets.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
