Increase In Price And Increase In Extra Long Staple Cotton Planting Area

Output is expected: 2006 to 07 years, the output of ELS cotton is estimated to increase from 24% to 700 thousand tons. The reason is that the price is high and the increase factor encourages farmers to expand their planting area.

From 2005 to 2006, ELS cotton production was only 563 thousand tons.

According to the August 2006 ICAC cotton supply and demand report released by the international cotton advisory board (ICAC), the consumption volume of production countries is expected to increase by 18000 tons to 455 thousand tons.

Global ELS exports are expected to increase by 26% to 386 thousand tons.

Price sensitive: according to the ACIA report, the supply and demand situation of ELS cotton has been greatly affected by prices in recent years. In 2005 to 2006, the world ELS cotton planting area decreased by 14% to 645 thousand hectares, while the price of ELS cotton fell sharply in 2004-05.

Due to poor planting conditions, ELS production fell to 563 thousand tons in 2005-06, resulting in tight supply and soaring prices last year.

The positive response of the company to the increase in price is that the production is expected to increase this year due to the high price and the price increase factor in 2005-06.

The ICAC report predicts that the cotton output in Egypt remained stable at about 203 thousand tons in 2006-07, while that in the United States increased by 42% and 194 thousand tons.

ELS cotton production in other countries is expected to increase by 34% to 302 thousand tons.

ICAC expects that the final inventory of the growing countries will fall to a low level of 125 thousand tons.

According to the report, the inventory to consumption ratio of ELS cotton decreased year by year, 2001-02 was 56%, and 2006-07 was expected to be 15%.

The ratio between 1990-00 and 2000-01 averaged 45%.

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