Global cotton output will rise 9.2 percent in the year starting Aug. 1 with consumption forecast to gain 2.8 percent, the International Cotton Advisory Committee said.
Production will rise to 27.3 million metric tons from an estimated 25 million a year earlier, the Washington-based group said today in a report. Consumption will rise to 25.3 million tons from 24.6 million, the committee said. Output in the year ending July 31 jumped 15 percent from a year earlier.
In 2010, cotton futures in New York have surged 61 percent, reaching a record $1.5195 a pound, as U.S. inventories plunged and growers struggled to meet demand in China, the world’s biggest consumer.
Inventories will rise 20 percent to 11.2 million tons in the season ending in 2012, the advisory committee said. Stockpiles held in warehouses monitored by ICE Futures U.S. have tumbled 76 percent this year.
Consumption in the current crop year was unchanged at 24.6 million from a year earlier, the group said.
Cotton for March delivery rose by the exchange limit of 4 cents, or 3.4 percent, to close at $1.2134 today on ICE Futures U.S. in New York.