ICAC Foresees Global Cotton Production Increase in 2010/11

By Jim.Robinson|March 3, 2010

Higher prices paid for 2009-10 cotton, combined with the recent decline in prices of grains and oilseeds and relatively stable production costs, will encourage farmers to increase cotton plantings in 2010-11, a new report from the International Cotton Advisory Committee concludes.

The ICAC report notes that world cotton production is forecast to rebound by 10 percent to 24.4 million tons. World cotton mill use is expected to continue to recover in 2010-11, growing by 3 percent to 24.8 million tons, driven by continued improvement in global economic growth. World cotton trade is projected to increase slightly in 2010-11 to 7.5 million tons. A small reduction in cotton ending stocks is expected in 2010/11.

Cotton prices increased sharply in February 2010, the ICAC says. Cotton prices are being supported by reduced production and rebounding mill use, which are expected to generate a 15 percent drop in global cotton stocks.

Source: International Cotton Advisory Committee Press Release