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Smaller World Cotton Residual
WASHINGTON - May 2/06 - SNS -- World cotton stocks should end up smaller than initially expected at the close of the 2005-06 marketing campaign, believes the International Cotton Advisory Committee (ICAC).
World mill use is estimated at 25.0 million metric tons (MT) in 2005-06, up 1.5 million MT (6%) from 2004-05, and 230,000 MT above world production.
"Consequently, world ending stocks are expected to remain essentially unchanged at an estimated 10.6 million MT on July 31st, 2006. This will still be 2 million MT above the level of world stocks at the end of 2003-04," the ICAC said.
World consumption is expected to increase by 3% in 2006-07 and reach 25.8 million MT, almost half a million MT above world production, forecast at 25.3 million MT. As a result, world cotton stocks are forecast down in 2006-07, to an estimated 10.2 million MT on July 31st, 2007.
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