Extra-fine cotton production for 2007-08 forecast at 766,000 tons
04 Aug '07
2 min read
World extra-fine cotton production is forecast at 766,000 tons in 2007/08, up 4% from 2006/07. Beginning stocks are forecast at 202,000 tons in 2007/08, up 42% from 2006/07. As a result, the 2007/08 extra-fine cotton supply is projected at 964,000 tons, up 10% from 2006/07 and 30% from 2005/06.
This would be the largest supply in five seasons, but it would remain well below supply levels before the mid-1990s. Production is expected to increase in China (Mainland), India and Sudan, but it is expected to decline in Egypt, Israel, Tajikistan and Uzbekistan.
Production is expected to remain about stable in other countries. In Egypt, production of extra-long staple cotton is forecast down by 27% to 39,000 tons, the lowest in seven years, whereas production of long staple cotton is forecast up by 18% to 187,000 tons. Higher extra-fine cotton supply in 2007/08 could continue to weigh on extra-fine cotton prices, which have already declined during 2006/07.
Extra-fine cotton exports are projected at 352,000 tons in 2007/08, up 8% from 2006/07. Sales of Extra-fine Cotton World extra-fine cotton export commitments for 2007/08 are estimated at 75,000 tons, accounting for 21% of projected exports as of mid-July 2007.
As of July 2006, export commitments for 2006/07 were estimated at 37,000 tons accounting just for 10% of projected exports. U.S. Pima export commitments for 2007/08 are estimated at 50,000 tons or 32% of projected exports, and include 7,000 tons of carryover sales from 2006/07. As of July 2006, U.S. Pima sales for 2006/07 were at 15,000 tons accounting for 10% of projected exports.
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