Global cotton production on the wane
The International Cotton Advisory Committee believes global cotton mill use will drop 1% in 2008-09 to 26.2 million tones because of slower global economic growth and higher cotton prices compared with polyester.
Cotton mill use is expected to fall in Turkey, the US, Brazil, the EU, Mexico, Thailand, Russia, Taiwan and Korea. However, cotton mill use is expected to rise, albeit at a slower rate, in China, Bangladesh, Indonesia and Vietnam.
The committee expects global cotton production to fall 6% to 24.7 million tons in 2008-09, mainly because the global cotton growing area has diminished in the face of increased competition from other crops. The US will be most affected, with production expected to fall 1.2 million tonnes to 3 million tonnes.
Chinese cotton are expected to increase significantly. However, imports to all other areas are expected to fall for the second consecutive season.
World cotton stocks are likely to fall 12% to 10.7 million tons in 2008/09.
