ECONOMIC UPDATE SEPTEMBER 2010

CURRENT MARKET REPORT	( 2010/09/06 - 102 KB ) - Download
The International Cotton Advisory Committee’s (ICAC) latest forecast of the 2010/11 average Cotlook A index (an indicator of world prices) of 89 US c/lb, is 4 US c/lb up from last month’s estimate and implies a 15% increase over 2009/10. The ICAC has lowered its estimate of 2010/11 global production by 125 000 tons mainly as a result of the severe floods in Pakistan. World cotton production is however expected to increase in 2010/11 to about 25.1 million tons, up 15% from 2009/10. The expansion in cotton production will be driven by the USA where production is anticipated to increase by about 52%. Apart from Pakistan, production increases are also expected in all the other major cotton producing countries. In India a record crop of 5.7 million tons is expected, up 13% from 2009/10.