ABSTRACT

Before examining the fundamentals of supply–demand and price, I would like to look at the conditions of the world cotton industry as all of us look to our future. It seems it is changing every six months and this all relates to China’s activity in textile exports, and cotton consumption.

When I spoke last year we were projecting Chinese cotton consumption at 27.0 million bales, and final consumption was 29.5 million bales, and today it appears their cotton consumption will be in excess of 30.3 million bales, this season, and projected higher for next season. They are literally controlling world cotton consumption as we look to our future. I will discuss this in more detail when I share my views on production and consumption in China.