An international farm group on Tuesday forecast world cotton production in 2004/05 at a record 25.2 million tonnes, up 22 percent from last year, because of bumper crops in China, India and Pakistan. The International Cotton Advisory Committee (ICAC) Secretariat said favourable weather during the first half of 2004/05 led world yields to an all-time high of 715 kilograms per hectare, up 11 percent from the previous record.
This year's unprecedented crop will cause world cotton prices to fall to 47 cents per pound, down from 68.3 cents in 2003/04, the group said in its monthly outlook report.
"Declining cotton prices in 2004/05 are expected to curtail plantings in 2005/06," the group said.
World plantings was forecast to decline to about 33 million hectares (81.5 million acres) next year, down 2 million hectares (4.9 million acres).
Although plantings will decline, ICAC forecast world cotton production in 2005/06 to be the second largest on record at 22.9 million tonnes.
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