Global Cotton production may outpace demand in 2019-20: ICAC
Commodity Online | October 03 2019
UPDATED 09:43:23 IST

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The International Cotton Advisory Committee (ICAC), in its cotton summary for October 2019, noted that global production - projected at about 26.8 million tonnes - is expected to slightly outpace global consumption, projected at 26.5 million tonnes, for the 2019-20 year, which began from August.

The East Asia region will continue to lead the world in consumption, but growth likely will be modest, and China’s 2018/19 consumption total of 8.25 million tonnes is expected to remain unchanged in the coming season.

Several major consuming countries should see gains - including India, Bangladesh and Vietnam - but overall growth is slowing, and none of those countries is likely to see gains of 2% or more, with the exception of Indonesia (projected 4% growth over 2018/19), ICAC said.

With plentiful supplies and weak export demand, the price on the Cotlook A Index has dropped to its lowest point since 2016, the report said.