World cotton area is expected to increase slightly in 2007/08 to 34.6 million hectares, up 1%. Assuming average yields, world cotton production is forecast stable at 25.1 million tons in 2007/08.
World cotton production is forecast at 25.1 million tons in 2006/07, 2% higher than last season and the second largest up to date. 2006/07 world cotton consumption is projected at 25.9 million tons. The rate of increase in global consumption has slowed from an impressive 8% increase in 2004/05 to 6% in 2005/06 and a projected 4% in 2006/07.
World cotton trade is forecast down by 7% in 2006/07 to 9.0 million tons, still the second highest level up to date. The main reason for this projected decline is the expected drop in Chinese imports to 3.6 million tons (-15%), whereas imports by other consuming countries are forecast stable.
* Season-average Cotlook A Index (U.S. cents per pound). The price projections for 2006/07 and 2007/08 are obtained based on the year-to-year price differentials projected by the ICAC Price Model (based on annual variations in net China (Mainland) trade and world-less-China (Mainland) stocks-to-use ratio).
The International Cotton Advisory Committee (ICAC) is an association of 42 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, $170 per year. A monthly outlook by fax is also available for $315 per year or on the Internet for $265 per year. Access to the weekly estimates of world cotton supply and use by the Secretariat is also available on the Internet for $420 per year.
Source: International Cotton Advisory Committee, 2007-01-05.