Home / Knowledge / News / Textiles / Record cotton production in 2011/12 as response to record prices

Record cotton production in 2011/12 as response to record prices

02
Mar '11
World cotton area is projected to rise by 7% in 2011/12 to 36 million hectares, the largest in 17 years, in response to record prices in 2010/11. Farmers are expected to expand cotton area in 2011/12 in all producing countries.

World cotton production is projected to increase by 9% to a record exceeding 27 million tons. Rising cotton supplies will feed rising demand in 2011/12. However, although prices are expected to decline from current record levels, it is likely that prices will stay substantially higher than the average of 60 cents per pound that prevailed during the past decade.

Higher prices, and competition from chemical fibers, are expected to limit growth in mill use during 2011/12 to 3% to 25.4 million tons. The largest increases in mill use are projected for India, China, Pakistan and Turkey.

World cotton prices reached new records during February 2011. A limited supply, robust demand and depreciation of U.S dollar may have caused the surge in prices. The very scarce uncommitted supply as of 2011 may provide strong pressure on prices and cause increased volatility through the rest of the season.

The Cotlook A Index reached a record of 233.5 cents per pound on February 18, 2011 and averaged 147 cents per pound during the first seven months of 2010/11 (77.5 cents per pound during 2009/10). The New York futures contract for March 2011 delivery rose from 77 cents per pound on August 2, 2010 to a record of 205 cents per pound on February 28, 2011.

In the current environment of volatility, the ICAC price model is less relevant than in other seasons. The Secretariat season-average projection for the 2010/11 Cotlook A Index is 161 cents per pound. The projection is not based on the ICAC price model, but on the average price for the first seven months of the season and our judgment that during the rest of the season prices will remain close to the average recorded during the beginning of 2011.

The projection is based on the average price for the first seven months of 2010/11 and our judgment that during the rest of 2010/11 prices would remain close to the average recorded during the beginning of 2011.

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.

International Cotton Advisory Committee


Must ReadView All

Pic: Ritu Manoj Jethani / Shutterstock.com

Apparel/Garments | On 31st Jul 2021

US firm Steve Madden moves production to Mexico & Brazil from China

As supply chain disruption remains a significant challenge, American...

Pic: GBG USA

Apparel/Garments | On 31st Jul 2021

Apparel & footwear firm GBG USA files for bankruptcy protection

GBG USA, an indirect wholly owned subsidiary of Global Brands Group...

Pic: Shutterstock

Apparel/Garments | On 31st Jul 2021

Asian garment industry market concentration, consolidation rise: ILO

Although Asia's garment market rose in size in value terms before the ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

There was a certain switch, but it was not 100% pandemic related

Textile Industry, Head honchos

Textile Industry
Head honchos

Fabric selection & recommendation based on client's brief

Textile Industry, Head honchos

Textile Industry
Head honchos

Good tidings expected for textile industry

Shambhu Nath Jha,

Shambhu Nath Jha

Leading research and consulting firm Fact.MR recently launched a report on ...

Mumin Can Eker,

Mumin Can Eker

Maseksport Inc is a readymade garment exporter. Founded in Izmir in 1989,...

Rajat Kapoor,

Rajat Kapoor

Seraphine is a British maternity brand providing affordable luxury fashion ...

Thomas Ong P S, NanoTextile

Thomas Ong P S
NanoTextile

Malaysian company NanoTextile Sdn Bhd taps into the potentials of...

Sameer Sonkusale & Rachel Owyeung, Tufts University

Sameer Sonkusale & Rachel Owyeung
Tufts University

A team at the Tufts University in Massachusetts was recently in news for...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll
Lenzing

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

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


July 2021

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


Advanced Search