Global Cotton Usage Will Increase By 3% In Fiscal Year 2011-12

The US Department of agriculture predicts that global cotton use will increase by 3% in fiscal year 2011-12.

The US Department of Agriculture said in its latest report that cotton consumption in 2011-12 is expected to grow by 4-5%, which will be lower than world economic growth for second consecutive years.

Traditionally, the growth rate of these figures is consistent, reflecting the amount of cotton used in clothing. Like other agricultural products, clothing is mainly a choice, different from food.

In fact, in the five years before the world recession,

But next year, this relationship will be broken, and the textile factory will be rebuilt.

The high price of cotton will continue to lead to demand turning to polyester. Polyester prices were about two times cheaper than cotton prices 5 years ago.

Cotton consumption is lagging behind, and cotton price outlook indicates a strong rebound in cotton production. Therefore, world cotton stocks will increase by 17.5% to 50 million 300 thousand bales.

At this level, cotton inventories represent 42% of consumption, much higher than 32% this year.

However, compared with the recent average level, it is still at a relatively low level.

The inventory to consumption ratio (widely used to measure the availability of a crop and hence its pricing potential) indicates a fall in prices. The 2010-11 year cotton outlook Cotlook A index averages 175 cents / pound, next year is 135 cents / pound.

On Friday, the A index hit 209.30 cents / pound, down 6.45 cents, down from its all-time high at the beginning of this month.

Holland cooperation bank analyst said.

The Bank of Holland says price declines actually encourage growers to sell because they are worried that prices will continue to weaken.

"A lot of dumping, coupled with planting conditions in the northern hemisphere, may be very good, which means that if there is no problem in production, cotton prices may be difficult to reproduce the recent high.