2008/09 world cotton consumption is expected to plant 24.5 million tons, representing a 7 percent reduction in 2007/08. 2008/09, the most important change is the amount of China Cotton Textile Factory is expected to be reduced by 10% to 9,800,000 tons.

China (mainland) is the largest cotton consuming countries, accounting for the world cotton mill consumption of about 40%. India and Pakistan is the second largest and third largest cotton consuming countries, the two countries are also cotton mill consumption will be reduced.

World cotton consumption decreased as a result, 2008/09 world cotton trade is expected to drop by 17% to 6,900,000 tons. This is the minimum volume of trade in 6 years. 2008/09 in particular, China’s imports is expected to 1,500,000 tons, representing a decrease of one million tons. Exporting countries were forced to back a bigger inventory, on the world cotton price formation pressure.

ICAC 2007 pricing model forecast 2008/09 average Cotlook A Index of 68 cents per pound, representing a decrease of 7%. However, the Secretariat believes that the 2008/09 average Cotlook A Index may be a reliable range of 95% (61-68 per pound cents) in the second half.