By admin       2019-02-05

ICAC - February 04, 2019 - By the conclusion of the 2018/19 season, world cotton stocks are projected to drop to 17.6 million tonnes, reflecting a decrease of 5% from the prior year and registering the fourth straight year of decline, the International Cotton Advisory Committee (ICAC) said in its latest report. Consumption is expected to remain steady but a 3% decline in global production will draw down the world’s warehouses, the report said. Production in China is estimated to increase 1% to 5.94 million tonnes, and when combined with a 7% decline in India’s production due to insufficient rainfall, the changes mean China will regain the ‘top producer’ title it lost to India in the 2015/16 season. Although cotton prices have come under pressure, current projections for global consumption are unchanged at 26.8 million tonnes, with production projected to be slightly lower at 25.9 million tonnes. Cotton prices are feeling the effects of uncertainty related to the global economic environment, as opposed to the impact of trade barriers. Price fundamentals still look solid, as reflected in the price forecast, the report said.

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