United States

Department of
Agriculture

Foreign
Cotton:
Agricultural
Service World Markets and Trade
Circular Series
FOP 07 - 10
July 2010

Franc-Zone Africa Exportable Supplies Stabilize

7 16%

Share World trade

6 14%
Exportable Supply
12%
5
Millon 480 LBS Balese

10%
4

8%
3
6%

2
4%

1
2%

0%

Since 2008, world cotton prices have been rising due to lower supplies. In addition, more favorable
exchange rates have increased Franc-Zone Africa (FZA) cotton prices in local terms relative to world
prices. As a result, production and exportable supplies in the region have stabilized. However, the FZA
share of world trade has settled at about half of what is was in 2003/04.
The prevailing situation was radically different before 2008. Nearly all international cotton trade is
conducted in U.S. dollars. With the African franc pegged to the euro, the near doubling of the value of the
euro prior to 2008 lowered FZA prices in local terms relative to the already low world prices. The
decline in local prices disrupted efforts to privatize the cotton sector, resulting in falling area and yields.
As a result, production fell and exports dwindled, even as world trade was growing.
Any recovery will likely depend on favorable exchange rates and improved efficiency.

Approved by the World Agricultural Outlook Board/USDA

 Prices
U.S spot prices remained relatively stable
on light transaction volumes. The A-Index
had shown continued growth as mill
searched out the last available supplies. In
late June, merchants stopped making quotes
for nearly all types of old crop cotton and
the A-Index for the current season stopped
being published.

TRADE CHANGES IN 2010/11

Major Exporters:

! United States is raised 800,000 bales to 14.3 million as crop conditions remain favorable.

! Uzbekistan is raised 200,000 bales to 3.8 million on a larger crop.

! Pakistan is lowered 300,000 bales to 400,000 on lower supplies.

! India is raised 100,000 bales to 5.9 million as export restrictions are lifted.

Major Importers:

! Turkey is raised 300,000 bales to 3.3 million as stronger domestic demand is expected to carry
through from the current season.

! China is raised 150,000 bales to 11.6 million based on delayed 2009/10 shipments from India.

! Pakistan is raised 400,000 bales to 2.3 million on lower supplies.

TRADE CHANGES IN 2009/10

Major Exporters:

! Brazil is raised 100,000 bales to 2.0 million on end-of-season demand accelerating shipments.

Major Importers:

! Turkey is raised 200,000 bales to 4.1 million on stronger domestic demand.

! China is lowered 150,000 bales to 10.7 million as India’s export restrictions delay shipments into
2010/11.

! Mexico is lowered 100,000 bales to 1.4 million.

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


         
   


         
         


         
         


         
         


         


         


         
         


         
         


         
         


         
         


         
         


         
         


         
         

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


         
   

         

         


         
         


         
         


         
         
         


         
         


         
         


         


         


         
         




         
         
         
         

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


 
     

 
      
      
      
      
      
      
      
      
      
 
      
      
      
      
      
      
      
      
      
 
      
      
      
      
      
      
      
      
      
 
      
      
      
      
      
      
      
      
      
 
      
      
      
      
      
      
      
      
      

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
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

 
     

 
      
      
      
      
      
      
      
      
      
 
      
      
      
      
      
      
      
      
      
      
      
      
 
      
      
      
      
      
      
      
      
      
      
      
      
 
      
      
      
      
      
      
      
      
      
      
      
      
 
      
      
      
      
      
      
      
      
      

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 

   

  

       
               
                
                
                


                
                
                
                
                
                

                
                
                
                
                
                
                
                
                
                
                

                
                
                
                
                
                
                
                
                
                
                

                
                



Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        


        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        


        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        


        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


        

  

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        


        

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
 


           
     



           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
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

           
    


           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010
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

          
   


          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          
          

Foreign Agricultural Service/USDA

Office of Global Analysis July 2010