Cotton Demand to Rise 3.1% in 2010-2011 Season, Cotlook Says

August 26 2010

Cotton Demand to Rise 3.1% in 2010-2011 Season, Cotlook Says

Aug. 26 (Bloomberg) -- Global cotton consumption will rise 3.1 percent in the season that began on Aug. 1 from a year earlier as textile mills boost purchases in China and India, according to Cotlook Ltd.

Consumption will increase to 25.715 million metric tons from 24.934 million a year earlier, the Birkenhead, England- based researcher said today in an e-mailed report. Production will be 24.959 million tons, leaving a 756,000-ton supply deficit, Cotlook said. A year earlier, the deficit was 3.071 million tons.

Cotton futures in New York have jumped 50 percent in the past year as output failed to keep pace with rising demand. Cotton for December delivery gained 1.29 cents, or 1.5 percent, today to close at 86.15 cents a pound on ICE Futures U.S. in New York.

Source: Bloomberg