Cotton Group Cuts Forecasts for Global Output, InventoryMarvin G. Perez
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.