July 2001
World cotton production for 2001/02 is projected
at 94.6 million bales, up 6.6 million from last year's output.
Prospects for a bumper global crop that will exceed projected
world consumption have pushed down prices to the second-lowest
world cotton A-index in the past three years, averaging 58.1
cents per pound through June of the 2000/01 season. Projected
production in the United States is increased to 19.2 million
bales, up from 17.2 last season, based on higher area due to
favorable returns for cotton compared with other crops, and a
return to more normal weather conditions. Production in China is
up at 22.0 million bales, with higher area and yield, as prices
and conditions favor cotton planting at the expense of
lower-priced alternatives. The production outlook in other major
cotton producers is for higher production, especially India,
where the monsoon is off to a good start, and the African Franc
Zone, where area is forecast to return to more normal levels.