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Record Cotton Supplies to Persist
WASHINGTON - Apr 4/06 - SNS -- World cotton supply (beginning stocks plus production) reached a record of 35.7 million metric tons (MT) in 2005-06, according to the International Cotton Advisory Committee (ICAC).
This puts this season's crop almost one million MT higher than in 2004-05 and almost six million MT higher than world cotton output across the 2003-04 marketing year.
World cotton demand is also reaching a record in 2005-06, estimated at 24.5 million MT, 4% higher than in 2004-05. However, with world production expected to exceed demand for the second consecutive season, world cotton stocks are projected to increase to a record of 11.2 million MT by the beginning of 2006-07.
International prices have increased in 2005-06, thanks to record world cotton demand (24.5 million MT). However, the season-average price of 58 cents per pound currently projected by the Secretariat for 2005-06 is only 6 cents higher than the 2004-05 season-average price.
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