In September 2003, average international cotton prices were 30 per cent higher year on year, while yarn export prices and polyester prices had risen about 10 per cent.
As a result, cotton consumption will be negatively affected, ICAC, an association of 42 governments of cotton producing and consuming countries said.
World cotton production is expected to increase to 20.2 million tons in 2003-04, about 900,000 tons more than in 2002-03.
World cotton mill use is forecast to increase by about 2 per cent and reach a record 21.2 million tons.
With consumption exceeding production for the second consecutive season, world ending stocks, which decreased by 1.8 million tons in 2002-03, are forecast to shrink by another million tons this season to their lowest level in nine seasons.
As a result, the average Cotlook A Index is expected to rise from 56 cents per pound in 2002-03 to 64 cents per pound in 2003-04.
Higher prices are expected to boost production to a record of 21.9 million tons in 2004-05, outpacing consumption by an estimated 300,000 tons. Thus, the season-average
Cotlook A Index is projected to decline to 61 cents per pound in 2004-05, ICAC said in its forecast.
Because of adverse weather, the ICAC estimate of China (Mainland)
