Better Yields to Boost Cotton Production in 2016/17
Date Posted: 01 Jul, 2016
Global consumption is forecast to remain at 23.6 million tons in 2016/17 as low prices for competing fibers make cotton less attractive. Consumption in China is projected to decline by 5% decline to 6.8 million tons. However, mill use is likely to grow by 11% to 1.2 million tons in Vietnam and by 10% to 1.2 million tons in Bangladesh. Despite declining demand for imports of cotton yarn by China in 2015/16, mill use in India is expected to recover by 3% to 5.4 million tons and in Pakistan by 1% to 2.2 million tons.
While mill use remains stagnant in 2016/17, world cotton trade volume may increase by 1% to 7.4 million tons. China’s imports are expected to decrease by 8% to 947,000 tons as the Chinese government continues to restrict imports in order to reduce its sizeable stocks of cotton. However, imports outside of China are forecast to increase by 3% to 6.5 million tons. Given the larger exportable surplus available in the United States, exports are projected to increase by 18% to 2.3 million tons in 2016/17.
World stocks at the end of 2016/17 are projected to decrease by 5% to 19.46 million tons as mill use exceeds production by 930,000 tons. Ending stocks in the rest of the world are forecast to rise by 3% to 8.7 million tons, though the stock-to-use ratio outside of China would be similar to the 36% registered last season.
| WORLD COTTON SUPPLY AND DISTRIBUTION | |||||||
| 2014/15 | 2015/16 | 2016/17 | 2014/15 | 2015/16 | 2016/17 | ||
| Changes from previous month | |||||||
| Million Tons | Million Tons | ||||||
| Production | 26.12 | 27.74 | 22.73 | 0.00 | -0.06 | -0.28 | |
| Consumption | 24.28 | 23.65 | 23.66 | -0.05 | -0.01 | -0.11 | |
| Imports | 7.60 | 7.34 | 7.44 | 0.00 | -0.03 | -0.07 | |
| Exports | 7.64 | 7.34 | 7.44 | 0.00 | -0.03 | -0.07 | |
| Ending Stocks | 22.29 | 20.40 | 19.46 | 0.07 | 0.01 | -0.20 | |
| Cotlook A Index* | 71 | 70 | 72 | ||||
* The price projection for 2015/16 is based on the ending stocks/consumption ratio in the world-less-China in 2013/14 (estimate), in 2014/15 (estimate) and in 2015/16 (projection), on the ratio of Chinese net imports to world imports in 2014/15 (estimate) and 2015/16 (projection). The price projection is the mid-point of the 95% confidence interval: 69 cts/lb to 71 cts/lb.
** The price projection for 2016/17 is based on the ending stocks/consumption ratio in the world-less-China in 2014/15 (estimate), in 2015/16 (projection) and in 2016/17 (projection), on the ratio of Chinese net imports to world imports in 2015/16 (projection) and 2016/17 (projection). The price projection is the mid-point of the 95% confidence interval: 58 cts/lb to 86 cts/lb.
Dr. Elsie Sia Kanza is the current Ambassador Extraordinary and Plenipotentiary of the United Republic of Tanzania to the United States of America and Mexico. Prior to that role, Ambassador Kanza served as Special Advisor to the President of the World Economic Forum, and, before that, Head of Africa and Member of Executive Committee for 10 years championing growth and development in Africa leveraging public private collaboration. In 2015, She was awarded a Doctorate in Business Administration (honoris causa) by the University of Strathclyde for the transformative impact achieved in Africa.
Alison Ward has over 30 years of international experience in sustainability and corporate affairs. Alison is the CEO of CottonConnect, where she leads a team of over 100 employees, impacting the lives of over 800,000 cotton farmers in India, China, Pakistan, Turkey, Egypt and Bangladesh. Under Alison’s leadership the organization: drives supply chain transparency connecting sustainable fibres from farm to store; focuses on the rights and skills of women in supply chains through pioneering gender programmes; and continues to develop innovations at a farm level. She leads cotton strategies and programmes for global brands and retailers.


Name: Mary Concilia Anchang
Besim Özek
SIDDHARTHA RAJAGOPAL, Executive Director – TEXPROCIL