NEW YORK: The International Cotton Advisory Committee (ICAC) on Tuesday again raised its outlook for record world inventories by the end of the 2014/15 crop year, as it hiked its outlook for global output.
World inventories will balloon to 22.25 million tonnes in the 2014/15 crop year, due to higher expected global output of 26.05 million tonnes, ICAC said in its monthly forecast on Tuesday.
While that production forecast represents a slight decrease from production of 26.09 million tonnes in 2013/14, it is jump from the industry group's August outlook of about 25.53 million tonnes.
China and India will compete for the world's top producer after farmers extended their plantings season this year due to the late arrival of monsoon rains in India, ICAC said.
Production will outpace demand for a fifth straight season, though the gap between the two will narrow due to climbing world demand.
Even so, world trade is expected to decline by 1 million tons to 8 million tonnes by the end of the season, as China begins to whittle down its behemoth stocks, according to ICAC.
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