London, 18 Macrh 2010

Cotlook’s latest production and consumption estimates for 2009/2010 suggest end-season stocks will contract by 2,175,000 tonnes – almost 20 percent more than our prediction a month ago. The change comes about from reduced assessments of output in some major producing countries, including China, and increased consumption, on the back of strong yarn demand, in a number of others, including the Indian subcontinent and Turkey. 2009/2010 will be the first time in several seasons during which world stocks have contracted. A further decline in stocks is currently projected in 2010/2011, notwithstanding the strong recovery in output foreseen in the United States. However, crops are not yet in the ground so much could change in this regard as the planting season unfolds.

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