Cotton prices expected to increase

WASHINGTON — With cotton prices near record lows, forcing growers to cut back on planting, cotton production is expected to decline sharply next season, falling behind world consumption and setting the stage for an increase in cotton prices, said the International Cotton Advisory Committee (ICAC) in its monthly update.

World consumption is forecast to decline by 9 percent next season, falling beneath world consumption by about 900,000 tons, said the ICAC. At the same time, net imports from China are expected to increase from an estimated 50,000 tons this season to 350,000 tons next year, putting even more upward pressure on prices.

Cotton prices are now forecast to jump up as much as 18 percent next year, said the ICAC, to $0.52 a pound from $0.44 this year.