Imports by China (Mainland) are projected at 3.7 million tons in 2006/07; this would represent 40% of world imports. However, there is significant uncertainty regarding projected 2006/07 Chinese imports due to lack of information on Chinese consumption and the intention (buying or selling
cotton) of the China National Cotton Reserves Corporation.

World cotton production is projected at 25.0 million tons in 2006/07, 300,000 tons higher than last season. Production is forecast to reach record levels in both China (Mainland) (6.5 million tons) and India (4.6 million tons).
However, production is expected to decrease in the United States (to 4.5 million tons) and Pakistan (to 2.0 million tons).

World cotton consumption is forecast at 25.6 million tons in 2006/07, up 3% from last season and driven by China (Mainland). Consumption in China
(Mainland) is forecast at 10.2 million tons this season, accounting for a record 40% of projected world cotton consumption.

World cotton stocks are projected at 11.6 million tons in 2006/07, down 3% from last season.

WORLD COTTON SUPPLY AND DISTRIBUTION

. 2005/06 2006/07 2007/08 2005/06 2006/07 2007/08 . Million Tons Million Bales Production 24.67 25.0 25.0 113.3 115 117 Consumption 24.82 25.6 26.1 114.0 118 120 Exports 9.73 9.0 9.4 44.7 42 43 Ending Stocks 11.89 11.6 11.2 54.6 53 52 Cotlook A Index* 56.15 57* 63* 56.15 57* 63*

* US cents per pound. The projections for 2006/07 and 2007/08 are based on the ICAC Price Model (using net China (Mainland) trade and world-less-China (Mainland) ending stocks-to-use ratio), reduced by one standard deviation. 88% confidence interval extends 8 cents per pound above and 8 cents per pound below the point estimate.

PDF version: http://www.icac.org/cotton_info/publications/press/2006/pr_november_06.pdf

The International Cotton Advisory Committee is an association of 41 governments of cotton producing and consuming countries. The Secretariat of the Committee publishes information related to world  cotton production, supply, demand and prices, and provides technical information on cotton production technology.