Cotton price outlook harsh
August 2, 2006,
Washington -- With the demand for cotton surging even as production dries up around the world, and as China continues to absorb a disproportionate share, cotton prices are forecast to rise almost 8% this year, before jumping up by more than 14% next year.
China and its textile mills will continue to drive world mill use, with Chinese consumption expected to reach a record 10.5 million tons next year, up about 6.1%, or 600,000 tons from last year. At that rate, Chinese textile plants will be using roughly 43% or the world's available supply of cotton.
Next year, the cotton growers said, India is expected to become the third largest cotton exporting nation, behind the United States and Uzbekistan . Indian cotton exports are forecast at over 800,000 tons next year.