International Cotton Advisory Committee (ICAC) has forecast no major change in world cotton production and mill use in 2008-09.
The International Cotton Advisory Committee is an association of 44 governments of cotton producing and consuming countries.
In its latest report, ICAC said world cotton mill use is expected to remain stable at 26.7 million tonne this season (2007-08) and also the same in 2008-09.
The main reasons for the stagnation in mill use are slower world economic growth and higher prices of cotton relative to polyester.
The strength of local currencies against the dollar and sometimes the euro also seems to be affecting the textile industry in a number of cotton consuming countries.
Cotton mill use in China and India, which account for more than half the world total, is growing at a slower pace now than in the last few seasons. Cotton mill use in Pakistan is forecast down this season, ICAC report said.
Production also remained steady at around 26.2 million tonne this year and also the same in 2008-09. A significant decline in production expected in the US and Brazil could be offset by increases projected in Asia, West Africa, and Australia.
World ending stocks are forecast down by 4% in 2008-09 to 11.4 million tonne. Despite stagnant consumption, world imports are expected to increase by 6% to 8.6 million tonne due to projected higher imports of 3.3 million tonne by China (Mainland), against 2.5 million tonne this year.
The secretariat, using the ICAC Price Model 2007, forecasts a season-average Cotlook A Index of 77 cent per pound in 2008-09, 4 cent higher than the average expected in 2007-08 (the 95% confidence interval is between 64 and 90 cent per pound).