The latest U.S. Department of Agriculture (USDA) cotton projections for 2007/08 indicate that foreign cotton consumption continues to outpace production.
Both foreign mill use and production this season are forecast above their respective levels for 2006/07, with consumption rising 6.5 million bales to nearly 125 million bales while production increases 1.6 million bales to slightly more than 102 million bales.
As a result, the gap between foreign consumption and production is expected to expand for the third consecutive season in 2007/08. Based on the October forecast, the gap is estimated at 22.8 million bales, well above 2006/07's 17.9 million. In addition, foreign consumption has exceeded production in each year since 1995/96.
With cotton use expanding faster than production in many countries, imports are expected to increase in 2007/08 as well, reaching their second highest on record.
Cotton Council International
marketing@alchempro.com
