The latest U.S. Department of Agriculture (USDA) projections for 2007/08 indicate that world cotton consumption is expected to significantly exceed the season's new supply of cotton for the first time in 5 years. The expected 7.0-million-bale deficit would be the largest such shortfall since 2002.
World cotton consumption is expected to rise 4.8 million bales in 2007/08, to 127.1 million bales. New supplies of cotton (cotton production plus unaccounted cotton) in 2007/08 are expected to decline 1.5 million bales, to 120.1 million.
The 2007/08 reduction in the new supply of cotton is primarily due to lower production in the United States, where a 4.1-million-bale drop is foreseen. China's and India's new cotton supplies are each expected to be about 1 million bales higher than in 2006/07.
World cotton consumption has risen steadily since 2003/04 due to a steady expansion in global income and clothing consumption, while new supplies have stagnated since 2004/05.
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Cotton Council International
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