(Ecofin Agency) - During the 2018-19 campaign, global cotton consumption is set to hit 27.5 million tons, reflecting an all-time 4% increase. This was revealed Aug 1 by the International Cotton Advisory Committee (ICAC).
However, global output is projected to fall by 4% to 25.9 million tons, mainly due to a decrease in fiber area in major producing countries including India (-3%) and the USA (-5%).
ICAC said, with this strong consumption, global reserves are expected to slump by 1.6 million tons to 17.7 million tons at the end of the season. As for world prices, the Cotlook A index (average of the day's cheapest five quotations on the Far East’s physical market) should stand at 87 cents per pound in 2018/2019.