ICAC ups world cotton stocks outlook, sees growing demand

The International Cotton Advisory Committee (ICAC) on Friday again raised its outlook for record world inventories by the end of the 2014/15 crop year, even as it projected demand to rise sharply as cotton regains market share from synthetic rivals.
World inventories will balloon to 21.69 million tonnes by the end of the 2014/15 crop year, up from 20.60 million at the end of July, ICAC said in its monthly forecast. That increase was largely due to higher starting inventories, as the group forecast global consumption will rise sharply this year.
"With polyester and cotton prices converging, world consumption of cotton is forecast to increase by 5 percent to 24.5 million tonnes," ICAC said in a statement. ICAC forecast world trade will plunge sharply from the previous year, widely expected due to an overhaul in a government stockpiling program in China, the world's top consumer and producer.