ICAC estimates global cotton use to decline by 2%

The International Cotton Advisory committee (ICAC) presented Global cotton production is forecast 8% higher in 2011/12, compared with 2010/11, at 26.8 million tons, whereas consumption could decline by 2% to 23.9 million tons.

As a result of the projected surplus of 2.9 million tons, global cotton stocks could rebound to 11.9 million tons by the end of 2011/12. This recovery follows two seasons of relatively tight global stocks.

Almost 40% of the gain in global stocks this season could take place in China, due to the rebuilding of the national reserve. Between October 8 and December 30, 2011, a total of 2.1 million tons of domestic cotton were purchased for the China national reserve. Daily purchases are continuing.

There is no limit to the amount of domestic cotton to be purchased by the national reserve this season. In addition, it is reported that about one million tons of non-Chinese cotton has been bought for the reserve; this cotton will be shipped to China over the next few months.

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