The United States Economic Research, University of Texas School of cotton (CERI) of the agricultural economist, said the global economic decline of the textile industry constitutes a fatal blow to the United States will continue to lose its share of global cotton market.

The institute released its annual projections indicate that Chinese cotton textile mill consumption substantially reduced, while the Chinese world cotton consumption is about 50% of cotton production. The next two years will be increased inventory of cotton, dragging down cotton prices continue to fall.

CERI president Darren Hudson said: “The economic downturn of the textile industry constitutes a fatal blow. If the economy at the end of 2009 or beginning of recovery in 2010, the textile mill cotton consumption will be at 2-3 after beginning the restoration of the quarter. Now, we predicted that this year Farm prices at around about 50 cents per pound. ”

The researchers also predicted that cotton planting area although several years, but this year will continue to decline, its causes are food prices higher, while cotton prices relatively low. Their prediction, Mississippi Delta cotton plantation area will be substantially reduced, but the United States to reduce cotton production in Brazil and India will be offset by increased production.

Brazil and India improve yields as well as domestic subsidies will continue to improve cotton production. American share of global cotton market share will continue to shrink.

Projections indicate that this period, prices will continue to improve, indicating at 6-8 years, the price will break through this year’s Farm around 50 cents the price of around 70 cents per pound towards development. Next year as long as the economy begins to moderate recovery in cotton prices will return.