LONDON: Global cotton stocks are expected to decline for the second consecutive season in 2016/17, research firm Cotton Outlook said on Friday.
Cotton Outlook (Cotlook), issuing its initial supply and demand forecasts for the 2016/17 season, which starts on August 1, said that world raw cotton production is expected to rise to 22.75 million tonnes, about 1.7 million tonnes more than the previous season.
However, consumption is forecast to increase by about 1.4 percent to 23.32 million tonnes, with a net decline in stocks of 569,0000 tonnes.
“The area devoted to cotton next season is expected to increase modestly, but the bulk of the projected rise in output can be attributed to expectations that yields will recover in some major producing countries, including India and Pakistan, after being blighted by pests and poor weather in 2015/16,” Cotlook said.
“The fall (in stocks) is forecast to take place mainly in China, whereas stocks outside that country are expected to recover following a downturn this season.”