March 1 (Bloomberg) -- The International Cotton Advisory Committee cut its forecast for global production by 2.8 percent, reducing estimated inventory by 0.8 percent.
Output in the 12 months starting Aug. 1 will be 22.56 million metric tons, compared with last month’s estimate of 23.2 million, the Washington-based group said today in a report. Stockpiles will be 15.77 million, down 0.8 percent from the February projection.
Consumption was estimated at 23.79 million tons, down 1 percent from a month earlier.
Cotton for May delivery rose 0.1 percent to 85.4 cents a pound today on ICE Futures U.S. in New York. This year, the price has climbed 14 percent, the most among 24 raw materials in the Standard & Poor’s GSCI Spot Index.
State reserves in China, the world’s biggest grower and consumer, expanded “at a ferocious rate” of almost 6 million tons from September to January, the committee said.
The U.S. is the top exporter.
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