Home / Knowledge / News / Textiles / Supplies of cotton will remain tight - Cotlook A Index

Supplies of cotton will remain tight - Cotlook A Index

02
Jul '10
Offers for cotton from the 2009/10 cotton crop shrunk during June 2010, resulting in the halt of the publication of the 2009/10 Cotlook A Index since June 22. The Cotlook A Index averaged 78 cents per pound in 2009/10, 28% higher than in 2008/09 and the highest since 1996/97. The 2010/11 Cotlook A Index (“Forward Cotlook A Index”), which was introduced on May 16, 2010, is now the only Cotlook A Index published.

As a result of a continued decline in world production and a concurrent rebound in global mill use, 2009/10 global cotton ending stocks are projected at 9.6 million tons, down by 21% from the previous season and the smallest level of stocks since 2003/04. The global stocks-to-use ratio is also falling, from 52% in 2008/09 to 39% in 2009/10, the lowest ratio since 1993/94.

Supplies of cotton will remain tight until the start of the harvest of the new crop in the northern hemisphere in August. World cotton production is expected to rebound by 14% in 2010/11, to 25 million tons. The forecast larger crop is explained mainly by an expansion in cotton plantings as farmers are reacting to the rise in cotton prices during 2009/10 and the declining prices of grains and oilseeds. World cotton mill use is projected to continue to recover in 2010/11, growing by 2% to 24.9 million tons, pushed by continued improvement in global economic growth but limited by high cotton prices and a slowing “restocking effect”. As global cotton production and mill use are forecast to almost balance in 2010/11, world ending stocks are expected to remain essentially unchanged at 9.6 million tons. The global stocks-to-use ratio is forecast to remain at 39% in 2010/11.

The International Cotton Advisory Committee (ICAC) Price Model forecasts a 2010/11 season-average Cotlook A Index of 87 cents per pound. The 95% confidence interval extends from 73 to 103 cents per pound. This forecast implies a 12% increase with respect to the 2009/10 forecast. However, caution must be exercised since all commodity markets are subject to great uncertainty.

The International Cotton Advisory Committee is an association of governments of cotton producing and consuming countries. The Secretariat of the Committee publishes information related to world cotton production, supply, demand and prices, and provides technical information on cotton production technology. Detailed statistics are found bimonthly in COTTON: Review of the World Situation, $185 per year. A monthly outlook is available on the Internet for $295 per year. Access to the weekly estimates of world cotton supply and use by the Secretariat is also available on the Internet for $460 per year.

International Cotton Advisory Committee (ICAC)


Must ReadView All

Pic: Shutterstock

Textiles | On 31st Mar 2020

UN calls for $2.5-trn rescue package for developing world

The COVID-19 pandemic will drive the world economy into recession...

Pic: Shutterstock

Textiles | On 31st Mar 2020

Bangladesh seeks $1 bn from IMF, WB to face COVID-19

Bangladesh has recently sought $1 billion in support from the...

Pic: Shutterstock

Textiles | On 31st Mar 2020

Cambodia to explore FTA with EAEU with Russian help

Cambodian deputy prime minister Hor Namhong recently met Russian...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

GST has levelled the playing field to an extent

Nitin Soni, Dolphin Jingwei Machines

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Victor Chao, Esmetex

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Rajat Jaipuria,

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Ramez Basmaji,

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Steve Cole, Xerium Technologies

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


March 2020

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


Advanced Search