Decreasing quotes for extra-fine cotton
Because extra-fine cotton crop is already harvested and now in the ginning process and that the planting areas were extended in the 2011/12 season based upon the record prices available the picture changed and prices declined last November and December
The global production for extra fine cotton in the ongoing season is expected to increase by 29% to 634000 t and thereof the U.S.A. and Egypt are accounting for 70% of the production gain but there are also larger productions in India, Sudan, China, Israel, Peru and Tajikistan.
In turn, consumption in producing countries is expected to rise by 4% to 413000 t and the one in Egypt by 59% to 53000 t but also a higher consumption is foreseen in India but a drop in China.
About three quarters of the production remain in producing countries and one quarter is earmarked for export and it amounts to 288000 t or 14 % more in the ongoing season. Not all of the producing countries are able to cover their own demand and therefore they import also. It is expected that those imports will decline 10% to 146000 t. Stocks in producing countries are projected to increase by the end of July 2012 by 52 % to 228000 t.