A new International Cotton Advisory Committee (ICAC) report informs that world cotton production is projected to increase 6 per cent year over year to 22.5 million tons in 2015/16. However, ICAC also estimates world ending stocks to have fallen by 13 per cent to 19.5 million tons in 2015/16, as global cotton demand outpaced production.
World cotton consumption is forecast to remain stable at 23.8 million tons, with China likely to be the largest consumer in 2016/17, despite an expected decrease in mill use of 3 per cent to 7.1 million tons, which would be the seventh consecutive season of contraction. As per the report, world cotton consumption in 2016-17 is expected to exceed world cotton production by 1.4 million tons, which would bring ending stocks to 18.1 million tons, down 7 per cent from 2015/16.
This year, world cotton consumption is expected to exceed world cotton production by 1.4 million tons, which would bring ending stocks to 18.1 million tons, down 7 per cent from 2015/16. Unlike in 2015/16, when an 11 per cent decrease occurred, ending stocks outside China are forecast to increase by 1 per cent to 8.3 million tons, though the stock-to-use ratio would remain unchanged. However, ending stocks in China are expected to decrease by 13 per cent to 9.9 million tons in 2016-17 as the government continues to dispose of its reserves.