MUMBAI (Commoditiescontrol) – International Cotton Advisory Committee (ICAC) projected 2018-19 cotton production to drop 3.65% to 25.89 million tonnes (170kg each) from 26.87 million tonnes a year ago due to drop in acreage at the key cotton producing countries, including India and U.S.
The trade body has however raised cotton consumption demand to 27.47 million tonnes, up 4.13% from 26.38 lakh tonnes.
It has pegged 2018-19 cotton import and export up by 4.30% each to 9.47 lakh tonnes, while end stock is projected to reduce by 8.19% year-on-year at 17.71 million tonnes.
Cotton area in 2018-19 is estimated to decrease in major producing countries including India (11.9 million hectares, down 3%) and the USA (4.25 million hectares, down 5%), although it should remain stable in China at 3.3 million hectares.
Sour trade relations between China and the USA have showed little signs of improvement, and could even deteriorate further in the near term, potentially causing major shifts in global trade patterns.
China’s 25% premium could prompt the USA, the world’s largest exporter, to seek new markets for its fibre, while other major exporters such as Brazil is expected to fill the void by increasing their shipments to China, the world’s largest importer.
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(By Commoditiescontrol Bureau; +91-22-40015533)
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