What is in this article?:
- Tight cotton market to continue in 2011
- U.S. textile recovery
National Cotton Council economists say a tight overall cotton supply/demand situation coupled with continued pressure from competing crops for the coming year is consistent with cotton prices above historical norms.
National Cotton Council economists say increased import demand will create a positive environment for U.S. cotton exports, which are forecast at 15.6 million bales.
- U.S. stocks will fall to as low as 2.3 million bales, leaving the U.S. virtually sold out of cotton for the remainder of the current marketing year.
U.S. textile recovery
Despite the pressure caused by higher fiber prices, Adams noted the recovery in the U.S. textile industry after more than a decade of decline. U.S. mill use has bounced back in recent months with current monthly estimates running 10 percent above year-earlier levels. The U.S. textile industry is being bolstered by the Upland Cotton Economic Adjustment Assistance Program (EAAP), which was authorized in 2008 farm law.
“EAAP funds have allowed U.S. cotton textile manufacturers to make significant investments in new textile machinery to increase efficiency, add capacity and expand into new product lines,” Adams said. “Funding has been used in the construction of new buildings and structural improvements to existing buildings. As a result, textile mills have added jobs, reduced costs, and increased their ability to be more competitive against foreign competition.”
Additional details of the 2011 Cotton Economic Outlook are on the NCC’s website at http://www.cotton.org/econ/reports/annual-outlook.cfm.