ICAC Issues Price Forecasts for 2009/10

Pro Farmer

The Secretariat of the International Cotton Advisory Committee (ICAC) forecasts a 2009/10 season-average Cotlook A Index of 63 cents per pound, with a 95% confidence interval ranging from 56 to 79 cents per pound. However, major uncertainties regarding projected cotton trade in 2009/10 pose substantial downward risks to this forecast. The Secretariat of the ICAC believes that the 2009/10 season-average Cotlook A Index is more likely to be within the range of 56 to 63 cents per pound.

In 2009/10, world cotton production is expected to continue to decline, for the third consecutive season, to 23.6 million tons. World cotton mill use is forecast stable at 23.7 million tons in 2009/10, while world cotton imports are expected to increase to 7.3 million tons. World ending stocks are expected to decline slightly to 12.5 million tons by the end of July 2010.