National Cotton Council Delegates, meeting in Memphis, Tenn., heard a voice of optimism when NCC economist Dr. Gary Adams told the group, data suggest the worst has been weathered and recent concerns are being replaced with prospects for recovery and growth. According to Adams, after seven months of the 2009 marketing year, it is increasingly clear that global cotton stocks will see their first substantial decline since the 2002 marketing year. It will be the largest single-year drawdown since 1986.
There is one unknown - mill use. Adams asked, "Is the rebound due to stronger consumer demand or the replenishing of pipeline inventories? Adams also noted that U.S. cotton's competitiveness with grains and oilseeds has improved to its most favorable position since prior to the 2006 season. This is reflected in the NCC's annual planting intentions survey results, a projected 10.1 million acres in 2010, up 10.3% from 2009.
Adams credited stronger prices with bringing additional acres into production outside the United States. And, at the same time production in both China and India could see a modest recovery in 2010. A projected drop in China's 2010 stocks will put their stocks-to-use relationship at the lowest level in recent years.
Powered by iNet Solutions Group ©2011 All Rights Reserved.