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| World cotton output may exceed demand next year |
| Bloomberg / Jun 12, 2009, 00:05 IST |
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 Global cotton production may exceed consumption for a fifth marketing season in the year through July 2010 as a projected recovery in demand fails to make up for a decline a year ago, Cotlook Ltd said.
“The difference between our production and consumption forecasts for 2009-10 portends a small increase in stocks,” Ray Butler, managing director of the research group, said in a prepared speech note presented at the China International Cotton Conference in Nanjing on Thursday.
Consumption may rise 3 per cent in the marketing year through July 2010 from a year earlier on the expectation of a recovering world economy, Butler said without giving a projected consumption quantity. Still, the volume will be 3 million tonnes less than a peak level in 2006-07 marketing year, he said.
Production may fall “marginally” next marketing year from 2008-09 to 23.2 million tonnes, while planting may drop 4 per cent, Butler said. Consumption in the 2008-09 marketing year declined an “unprecedented” 13 per cent from a year earlier, he said.
Still, cotton prices have risen this year while the US exports gained market share after other governments stockpiled some of the supply, Butler said.
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