World cotton demand will exceed global production in 2004/05 by nearly 2.9 million tonnes, the highest gap in 20 years, an international farm group said on Wednesday. The International Cotton Advisory Committee Secretariat said world output in 2004/05 would be a record 26.13 million with global consumption trailing at 23.24 million tonnes. In the 2005/06 growing season, cotton demand is expected at 23.7 million tonnes, exceeding supply by 300,000 tonnes.
The current glut in cotton has suppressed market prices, the group said in its monthly outlook, and will result in fewer acres planted in 2005/06.
A major player in the 2005/06 growing season will be China, which is expected to boost cotton consumption by 5 percent to 8.6 million tonnes to fuel growing textile production. ICAC said China's increase in demand will help boost cotton prices to 68 cents per pound in 2005/06 from 53 cents per pound in the current crop year.
World end stocks are forecast to decline slightly to 10.20 million tonnes, down from 10.53 million tonnes in 2004/05.
Comments
Comments are closed.