In 2007/08, world cotton production is forecast to remain stable at 25.3 million tons whereas world cotton consumption is expected to continue to increase to 26.5 million tons (+2%). As a result, world cotton stocks are expected to decline by 7% to 10.7 million tons by the end of 2007/08. World cotton trade is projected up by 4% to 9.1 million tons in 2007/08, driven by predicted higher Chinese imports.

2006/07 world cotton production is estimated at 25.3 million tons, 3% higher than last season thanks principally to higher yields. World cotton consumption is estimated at 25.9 million tons in 2006/07, up 4%. World cotton imports are forecast to decline by 8% in 2006/07 to 8.8 million tons, the second highest on record. The main reason for this projected decline is the expected drop in Chinese imports in 2006/07. 2006/07 exports are projected to decline in most large exporting countries including the United States, Uzbekistan, Brazil, and Australia. In contrast, 2006/07 Indian exports, boosted by a bumper crop, are expected to reach a record.

WORLD COTTON SUPPLY AND DISTRIBUTION

. 2005/06 2006/07 2007/08 2005/06 2006/07 2007/08 . Million Tons Million Bales Production 24.68 25.3 25.3 113.3 116 116 Consumption 24.82 25.9 26.5 114.0 119 122 Exports 9.78 8.8 9.1 44.9 40 42 Ending Stocks 11.79 11.6 10.7 54.2 53 49 Stock adjustment 0.29 0.3 0.3 1.4 1 1 Cotlook A Index* 56.15 59* 66* 56.15 59* 66*

* Season-average Cotlook A Index (U.S. cents per pound). The projections for 2006/07 and 2007/08 are based on current estimates of supply and use.

PDF version: http://www.icac.org/cotton_info/publications/press/2007/pr_february_07.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.