May 3 (Bloomberg) -- Global cotton consumption will jump in the year starting Aug. 1 because of the improving world economy, the International Cotton Advisory Committee said. Output will also climb, the group said.
About 24.8 million metric tons of the fiber will be used in the year that begins Aug. 1, up from an April 1 forecast of 24.6 million and the current-season estimate of 24.4 million tons, the Washington-based committee said today in a report.
Output will total 24.8 million tons, topping the April estimate of 24.7 million and the current-season forecast of 22.1 million, the group said. High prices spurred the increase, the committee said.
The Cotlook A Index of prices in Asian ports will climb to an average 85 cents a pound next season from 77 cents this year, the group said. The index, which reflects the average of the five cheapest prices offered at Far East ports, fell 1.3 percent to 90.55 cents on April 30 from the previous day.
Cotton for July delivery dropped 0.9 cent, or 1.1 percent, to 83.23 cents a pound on ICE Futures U.S. in New York. The price has gained 46 percent in the past 12 months.
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