TEXAS (Commodity Online): The global cotton trade is predicted to decline by 18% in the new cotton season beginning this August according to Washington, DC based International Cotton Advisory Committee (ICAC).
On July 2nd, the ICAC reported that the amount of cotton traded globally will be 7.6 million tons during the forthcoming new cotton year (August 2012-July 2013).
As per Seshadri Ramkumar, Texas Tech University, USA, the volume of cotton traded in the present year ending in July, 2012 is expected to be 9.2 million tons.
According to ICAC, cotton use in mills is estimated down by 7% this year. Volatility, high price and the slow growth in the global economy are some of the reasons for the decline in the cotton yarn demand and hence the cotton mill use.
China is attributed to the increase in the global cotton trade this year.
According to the ICAC, Chinese government rebuilt its cotton reserve enabling a leap in the global cotton trade this year. This situation will change in the new season.
For the new cotton year, cotton imports by China are projected to fall by 50% and the import quantity is expected to be about 2.7 million tons.
The global cotton production is estimated to decline in the new season by 8% and will be about 24.9 million tons.
In Inter-Continental Exchange (ICE), cotton for July delivery traded at 72.15 cents per bushel on 3rd July.