China supply, demand presses cotton prices

Washington – With worldwide demand for cotton fore cast to rise modestly next year while production remains virtually flat, cotton prices are expected to rise in the neighborhood of 6.9% during the 2007/08 cotton growing year, to about $0.62 a pound from an average of $0.58 this year.

In a monthly update of its annual cotton supply, demand and pricing forecast, the International Cotton Advisory Council (ICAC) said world cotton production for the upcoming cotton year is forecast at 25.2 million tons, virtually unchanged from the 25.3 million tons on track for this year.

Production in China is forecast to decline slightly to 6.5 million tons, still the second largest harvest to date. U.S. cotton production, however, is forecast to slide at a double-digit pace next year, falling by 10% to an estimated 4.3 million tons. Picking up some of the slack, production in India is expected to rise slightly, to a record 4.7 million tons.

But demand continues to grow, said the cotton growers’ cartel, putting upward pressure on prices. Worldwide consumption of cotton is projected to increase by 2% during the upcoming cotton year, to 26.7 million tons, “still driven by Chinese mill use,” said the cotton growers.

“International cotton trade is expected to rebound from 8.5 million tons in 2006/07 to 9.2 million tons in 2007/08, driven by an expected rebound in Chinese imports.”

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • The Countdown to the ICON Honors Continues featuring Christophe Pourny

    Camera Icon More Videos

CURRENT ISSUE

HTT digital edition

See the May 2017 issue of Home & Textiles Today. In this issue, we discuss our annual Market Basket survey, which finds higher prices and more polyester at leading retailers. See details!