The latest forecast released this week by the inter-governmental
group sees world cotton demand for the 2012-13 season, which ends on
July 31, down by more than 510,000 tons from earlier estimates. It
blames slower global economic growth.”/span>
.The ICAC described a recent “improvement” in demand for cotton as a
“short-term respite.” It added that purchases by the Chinese government
have also contributed to price stabilization, but that the medium-term
outlook regarding world cotton mill use is “still overcast.” .
.International cotton prices steadied at around $1 per pound in January 2012 after decreasing for almost ten months .
.World cotton mill use is projected to be down by 3% in 2011-2012 to
23.7 million tons — and could begin to rise again the following season
if the health of global economy improves .
.Global cotton production is rising by an estimated 7% in 2011-2012,
to 26.8 million tons — the largest level of production achieved in five
years — but could drop to 24.9 million tons in 2012-2013 if farmers
switch to higher priced grains and soybeans .
.The large excess supplies in 2011-2012 mean global cotton stocks are
set to rebound by a third to 12.3 million tons, following two seasons at
relatively tight levels. Production is expected to continue exceeding
consumption in 2012-2013, which could translate into further increases
in global cotton stocks, to 12.9 million tons .