ICAC forecasts a record 8.4mn tons cotton output in 2005/06

02 Nov '05

2 min read

International cotton trade is forecast at a record 8.4 million tons in 2005/06, accounting for 34% of projected world production. Imports by China (Mainland) are expected to account for 35% of world imports this season compared to 20% last season.

Exports from many countries are projected to increase, because of demand from China (Mainland) and high stocks.

Cotton planted area is estimated at 35.4 million hectares in 2005/06, down only 1% from last season. Due to less favorable weather conditions, yields are expected to decrease by 4% and reach 705 kilograms per hectare.

As a result, world production in 2005/06 is estimated at 25 million tons, down 5% from last season. However, due to very high beginning stocks, total supply for 2005/06 is forecast at 35.3 million tons, the largest in history.

Production in China (Mainland) is estimated at 5.77 million tons, down 9% from the record of last season. US production is estimated at 4.95 million tons, down only 2%.

India is expected to experience an increase in production
to an unprecedented 4.25 million tons (up 3% from 2004/05).

Global mill use is forecast up 3% to 24.2 million tons. Ending stocks are forecast to rise to 11.1 million tons by the end of this season, the highest in twenty years.

Click to view World Cotton Supply & Distribution

Market fundamentals suggest that the Cotlook A Index will
average 61 cents per pound in 2005/06, 9 cents above the previous average.

International Cotton Advisory Committee

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