World cotton trade is expected to rebound by 9% to 8.9 million tons in 2007/08 due to larger forecast Chinese imports. U.S. exports are expected to increase to 3.7 million tons. Indian cotton exports are expected to continue to expand in 2007/08 to over one million tons, making India the second largest cotton exporting country.
World cotton production is expected to decline slightly in 2007/08 to 25.5 million tons. Despite the small gain in prices in 2006/07, cotton area is estimated slightly down to 33.5 million hectares in 2007/08, but the world yield is expected to reach a record of 762 kilograms per hectare.
World cotton consumption is forecast to increase to 27.2 million tons in 2007/08. Sustained global economic growth will continue to lift the world textile industry but projected increases in cotton prices are expected to slow the growth in world cotton mill use to 3%, down from 6% in 2006/07. China (Mainland)'s textile industry will continue to drive world cotton mill use in 2007/08.
The Secretariat, using the ICAC Price Model 2007, forecasts a season-average Cotlook A Index of 71 cents per pound in 2007/08, 12 cents higher than in 2006/07. This projected price increase is the result of an expected significant decrease in the stocks-to-mill use ratio in the World-less-China (Mainland) in 2007/08.
International Cotton Advisory Committee
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