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Southern Cotton Output Down 13%
WASHINGTON - Mar 2/06 - SNS -- Cotton production in the southern hemisphere is expected to drop 13% across 2005-06 to 2.3 million metric tons (MT), according to the International Cotton Advisory Committee (ICAC).
At that level of production it will only account for 9% of world output this season, down from 10% in 2004-05 and 11% in 2003-04.
Cotton production is expected to drop 10% in Argentina to 130,000 MT and plunge 24% in Brazil to 990,000 MT.
"Dry conditions in Argentina delayed and reduced cotton plantings," the ICAC said. "In Brazil, changes in the exchange rate increased production costs and made even less favorable the below-average world prices at planting time; in addition some producers faced difficulties in obtaining loans from banks to finance production costs."
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