Cotlook ups 2004/05 global cotton usage forecast

Cotton Outlook upped its 2004/05 estimate for global cotton usage by 151,000 tonnes to nearly 21.7 million tonnes on Thursday, at the same time shrinking its world surplus forecast by a similar amount.
"As regards consumption, our figure for 2004/05 has been raised substantially, owing mainly to an increase in China where observers predict that an improved supply from the domestic crop, supplemented by imports, should allow continued strong growth in mill use," it said a monthly report.
"As a consequence, the surplus of supply over demand next season implied by our estimates, though still sizeable, has shrunk since last month to 636,000 tonnes, Cotlook added.
The UK-based firm made little changes to its output forecasts.
"Only modest changes have been necessitated to Cotton Outlook's production estimates during the past month, reflecting the generally successful conclusion to harvesting in the southern hemisphere and absence of any major setbacks in early new crop development in the northern hemisphere," it said.