Cotton Production Lagging Demand
September 18, 2006,
Driven once again by accelerating demand from China’s textile industry, worldwide cotton consumption is forecast to rise by more than 3% in the new Cotton Year that begins this month, climbing to a record 25.7 million tons and outpacing declining cotton production for a second straight year.
Driving this year’s forecast record cotton use, demand from Chinese mills is projected to jump by 6.1%, or 600,000 tons, to a record 10.5 million tons, putting pressure on other nations’ textile mills and driving up cotton prices.
Scoping out worldwide production trends, the cotton cartel forecast production up in China, India and Pakistan, but “significantly down in the United States.” Moreover, the growers’ trade group said, “With world cotton consumption expected to exceed production by 1.0 million tons, world cotton stocks are expected to decline to 9.8 million tons by the end of the current cotton year, down almost 10% from the preceding year.”
WORLD COTTON SUPPLY AND PRICING FORECAST
(in millions of tons)
|Source: International Cotton Advisory Council (ICAC)
|2005/06 (ACTUAL)||2006/07 (PROJ.)||2007/08 (PROJ.)|