World cotton output should increase in 2011/12, moderating the previous year's volatile prices, but United States production will miss government estimates, an international farm group said on Monday.
The International Cotton Advisory Committee secretariat said reports of crop failures in Texas and surveys of crop insurance claims in the United States suggest lower 2011/12 yields than the US Department of Agriculture has projected.
ICAC said US cotton production in 2011/12 would be 3.4 million tonnes, 200,000 tonnes fewer than USDA forecast in September. World cotton production will reach 26.6 million tonnes, boosting ending stocks from 9 million to 10.9 million tonnes, the group said.
Tight global cotton stocks and government interventions last year caused the highest volatility in cotton prices in decades. Cotton was the most volatile of 53 commodities tracked by the International Monetary Fund in 2010, ICAC said. Consumption in 2011/12 was seen rising at a slower rate than output, from 24.4 million tonnes in 2010/11 to 24.7 million tonnes, and prices will stabilise for the year, the group said.
Comments
Comments are closed for this article.