2006/07 world cotton production is forecast at 24.9 million tons, up 1% from last season. Most cotton has been harvested in the northern hemisphere, where
2006/07 production is projected at 22.7 million tons, up 270,000 tons from last season. Cotton area in the southern hemisphere is expected to increase by 6% to 3.3 million hectares, but the average yield is forecast to decline by 9% to 647 kilograms per hectare. As a result, 2006/07 production in the southern hemisphere is projected at 2.2 million tons, down 3% from last season.

Driven by China (Mainland), world cotton consumption is forecast at 25.5 million tons in 2006/07, up 3% from last season. World cotton imports are projected at 9.0 million tons in 2006/07, down 5% from the record reached in
2005/06 due to a projected decline in imports by China (Mainland).

WORLD COTTON SUPPLY AND DISTRIBUTION

. 2005/06 2006/07 2007/08 2005/06 2006/07 2007/08 . Million Tons Million Bales Production 24.66 24.9 25.1 113.3 114 115 Consumption 24.77 25.5 26.1 113.8 117 120 Exports 9.69 9.0 9.4 44.5 42 43 Ending Stocks 11.93 11.6 10.9 54.8 53 50 Stock adjustment 0.30 0.3 0.3 1.4 1 1 Cotlook A Index* 56.15 56* 62* 56.15 56* 62*

* 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). estimate.

PDF version: http://www.icac.org/cotton_info/publications/press/2006/pr_december_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.