In 2012, Global Cotton Output Continued To Be Higher Than That Of Textile Mills.

The world's 2012/13 production is expected to be 114 million 100 thousand packs, up by nearly 300000 packs since last month's report, as the US output forecast is up.

The price of crops is higher this year.

Low fiber demand reduced global planting area and output.

Although the US output in 2012/13 is expected to be larger than last year, because of the devastating droughts in the United States last year, the output of other major cotton producing countries decreased. Therefore, world production decreased by 7% from the 122 million 700 thousand highest level last year, to the lowest level in three years.

In China, cotton production is estimated at 31 million packs in 2012/13, a decrease of about 7.5% from 33 million 500 thousand a year ago.

The planting area is expected to be reduced by 9%; however, the per unit yield is expected to reach a record high of 1350 kg / ha, which will help stabilize China's output.

India is the second largest cotton producing country in the world, and this year's output is expected to reach only 23 million 500 thousand packages, a decrease of 3 million packs from 2011/12 and a minimum of 4 years.

India's planting area is expected to be 11% less than that of the previous year's 12 million 200 thousand hectares. The estimated area is 10 million 800 thousand hectares this year.

Weakness and so far limited monsoon rainfall.

In Pakistan, Brazil and Australia, 2012/13 production is also expected to decrease because of the reduced planting area.

Pakistan is expected to produce 9 million 700 thousand bags, nearly 1 million less than 2011/12.

Brazil's output is estimated at 6 million 800 thousand packages, significantly lower than the previous two years.

Meanwhile, Australia's output this year is estimated to be about 4 million 300 thousand packs, similar to that of 2010/11.

Although the production of these countries is expected to be less than 2011/12 years, their production scale is expected to remain relatively high compared to the historical average production.

Global cotton consumption is projected to be 108 million 200 thousand packs in 2012/13, down by about 800000 packages from last month's report, but it is still nearly 2 million 800 thousand packs (2.6%) higher than that in 2011/12.

The consumption of textile factories in China, the main textile mills, will continue to decrease. The consumption of 2012/13 is expected to be only 39 million packs, down 1 million packs from last year, to the lowest level since 2004/05.

China's cotton yarn factory is losing market share because of the fact that the bottom line has been set by the government and the domestic price is 50% higher than the world price.

On the contrary, India's cotton consumption in 2012/13 is expected to increase by a similar level, reaching the highest level of 21 million 500 thousand packages.

Pakistan, 2012/13

The amount of fabric mill is also expected to increase by 900000 packs to 11 million packs.

India and Pakistan have increased exports of cotton to China in recent months.