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Worldwide cotton consumption stagnates

02
May '08
Global cotton mill use is expected to remain stable at 26.7 million tons in 2008/09. The main reasons for the stagnation in mill use are slower world economic growth and higher prices of cotton relative to polyester.

World cotton production is also projected essentially unchanged in 2008/09, at 26.2 million tons. A significant decline in production expected in the United States and Brazil could be offset by increases projected in Asia, West Africa and Australia.

World ending stocks are forecast down by 4% in 2008/09 to 11.4 million tons. Despite stagnant consumption, world imports are expected to increase by 6% to 8.6 million tons due to projected higher imports by China (Mainland).

The Secretariat, using the ICAC Price Model 2007, forecasts a season-average Cotlook A Index of 77 cents per pound in 2008/09, 4 cents higher than the average expected in 2007/08 (the 95% confidence interval is between 64 and 90 cents per pound).

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International Cotton Advisory Committee


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