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Mumbai – With global economy rebound and high prices of cotton in an anticipation of increased consumption, sowing is likely to spur in the coming marketing year, apprised International Cotton Advisory Committee (ICAC) in an official press release issued on Tuesday.
ICAC in its report has estimated a rise of 21 per cent in global prices during current August- July season compared to last year. The committee has attributed this rise to sharp increase in prices during February.
ICAC has projected Cotlook A Index, a barometer for world cotton prices, to average 74 cent per pound. The Index has touched 85.55 cent per pound on February 26 from 75.35 cent per pound on February 1. Ending stock of cotton in the current year is expected to remain around 1.05 crore tons which has squeezed down 15 per cent from last year due to thin production and an escalation in mills’ consumption.
The press release further said that Cotlook daily Index could remain above 80 cent for sometime and may drift towards lower level by the end of current season as fair competition by polyester and higher output estimate in 2010-11 may weigh on sentiments.
High prices will encourage more planting of cotton in 2010. Weakness in pluses and oilseeds prices and a relatively stable production cost will fuel higher acreage under cotton. ICAC in 2010 has estimated an increase of 10 per cent in total output at 2.44 crore tons.
Global consumption in 2010-11 is projected around 2.48 crore tons, higher 3 per cent. ICAC further cited that global trading of cotton is estimate to touch 75 lakh tons against 73 lakh tons last year while stocks will fall down to 1.01 crore tons from 1.05 crore tons of last year due to high consumption.
World Cotton Supply And Distribution
2008/09
2009/10
2010/11
2008/09
2009/10
2010/11
MillionTons
MillionBales
Production
23.41
22.2
24.4
107.5
102
112
Consumption
23.23
24.1
24.8
106.7
111
114
Exports
6.56
7.3
7.5
30.1
34
35
EndingStocks
12.33
10.5
10.1
56.6
48
46
CotlookAIndex*
61.20
74**
61.20
74**
*Season-average Cotlook AIndexin U.S. cents per pound.
03 March, 2010 by admin