Global cotton consumption may rise 1 percent in the upcoming 2017/18 trade year and stay well ahead of the cotton harvest as the world whittles down a surplus of the fiber, says the International Cotton Advisory Committee. If so, the cotton stockpile would decline 1.3 million tonnes, or 7 percent, in the year ahead.
In a monthly report, the ICAC said the season-average cotton price, estimated at 78 cents per pound in 2016/17, would fall to 73 cents in the new marketing year. “Global consumption may recover by 1 percent in 2017/18 to 24.4 million tons as cotton prices decrease, and growth in the global economy is expected to be much stronger in 2017 and 2018,” said the intergovernmental body. The 2017/18 crop was forecast at 23.12 million tonnes, up 1 percent.
China already has sold 450,000 tonnes of cotton from its state-owned reserves since sales began last month, said ICAC. If sales continue at that brisk pace, the government stocks will shrink to 6 million tonnes by the end of August and help bring down total stocks in China, whether privately held or in government hands, by 17 percent during the current trade year.