Washington, DC
January 3, 2006
The Secretariat estimates that
world cotton area will grow by about 3% to 35.7 million hectares
in 2006/07, encouraged by higher prices this season. Most of
this expansion is expected to take place in China (Mainland) and
India, whereas harvested area is forecast down in the United
States and is expected to remain stable in Pakistan. Assuming
average yields, it is expected that world production will reach
25.3 million tons in 2006/07, about the same as in 2005/06 and
below the 2004/05 record of 26.3 million tons. The Secretariat
projects a decrease in international prices in 2006/07 compared
to 2005/06. This forecast is supported by an expected decline in
net imports by China (Mainland).
World cotton production is estimated at 25.1 million tons in
2005/06, about 5% less than last season but still the second
highest on record. Production is expected to drop significantly
in China (Mainland) and Pakistan, but may remain stable in India
and is expected to reach a record of 5.2 million tons in the
United States (2% more than in 2004/05). While production may
decrease by 4% in the northern hemisphere, it is expected to
drop by as much as 13% in the southern hemisphere due to a
significant decline in cotton area. In particular, area is
expected to decrease by as much as 24% in Brazil. World cotton
consumption is expected to increase by 4% in 2005/06, to 24.3
million tons. China (Mainland) is expected to capture most of
the growth in mill use this season.
The Cotlook A Index is forecast to average 65 cents per pound in
2005/06, up 13 cents from last season. This price projection
results from a forecast increase in net imports by China
(Mainland), triggered by the combination of a drop in Chinese
production and an expected significant increase in consumption.
WORLD COTTON SUPPLY AND DISTRIBUTION
. |
2004/05 |
2005/06 |
2006/07 |
2004/05 |
2005/06 |
2006/07 |
. |
Million Tons |
Million Bales |
Production |
26.30 |
25.1 |
25.3 |
120.8 |
115 |
116 |
Consumption |
23.48 |
24.3 |
25.0 |
107.9 |
112 |
115 |
Exports |
7.74 |
8.8 |
8.6 |
35.5 |
40 |
39 |
Ending Stocks |
10.42 |
11.2 |
11.5 |
47.9 |
51 |
53 |
Cotlook A Index |
52.2 |
65* |
62* |
52.2 |
65* |
62* |
|
* US cents per pound; the
statistical estimates for 2005/06 and 2006/07 are based on
current estimates of supply and use; 95% confidence intervals
extend 12 cents per pound above and below the estimate.
PDF version:
http://www.icac.org/cotton_info/publications/press/2006/pr_january_06.pdf
The International Cotton
Advisory Committee is an association of 41 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,
$160 per year. A monthly outlook by fax is also available for
$300 per year or on the Internet for $250 per year. Access to
the weekly estimates of world cotton supply and use by the
Secretariat is also available on the Internet for $500 per year. |