Summary of the finished 2008/2009 season

  1. Summary of the finished 2008/2009 season

In the 2008/2009 season ended on 31 July, the aftermath of the global recession was well visible. For the first time since 10 years, the world cotton consumption (in processing) dropped. High with no precedent– as much as 13 percent fall of cotton consumption caused that the world cotton industry processed only 23 million tonnes in 2008/2009. World cotton production lowered by almost 11% in 2008/2009 – down to the level of 23,4 million tons and in some regions (West Africa, USA, Turkey, Egypt) the drops in cotton production exceeded even 30%. Last season, in some countries – in China, USA, and India, in particular – the governmental subsidies level rose and this had an adverse impact on the condition of cotton producers in poorer regions (Africa, Latin America). Average cotton prices in 2008/2009 were lower when compared to the 2007/2008 season by 16%.Tthe average Cotlook A Index was 61,15 UScents/lb, whereas in 2007/2008 it was 72,90 UScents/lb. The past season was also characterised with very great cotton price fluctuations from the level of 80 UScents/lb in August 2008 to 50 UScents/lb in March 2009. In 2008/2009 season, the world cotton turnover decreased considerably. World cotton import was lower by over 24% when compared to previous years.


  1. FORECAST FOR 2009/2010 SEASON

World cotton growing area will decrease and will be the smallest one since 60 years.

After two seasons of drops, the 2009/2010 season will bring stabilisation, or even increase of world cotton production – a slight cotton production increase, in spite of shrinking global area will result from the higher yield per hectare, mainly thanks to dynamically increasing share of genetically modified varieties.

In 2009/2010 season the fall of world cotton consumption will be stopped, and in case the recession retreats, the processing of cotton fibre will be rising.

World cotton stocks – almost unchanged.

After immense falls in the past season, the world cotton turnover will be rising in 2009/2010 season.

In 2009/2010 the average season cotton prices (in USD) will be close to those of the past season.

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