NY Cotton Moves Lower On Demand Worries

The International Cotton Advisory Committee raised its forecast for world inventories to 21.41 million tons, a bit higher than previously forecast. The committee sees lower consumption for China, Turkey and Pakistan. Turkish consumption is expected to drop 4 percent. China consumption is estimated to be down by 7 percent. Market talk continues about a reduction in global production. The committee estimates production at 24.41 million tons a bit lower than 24.55 million in February and down from 26.36 million a year ago.NY Cotton prices are trading lower Tuesday morning. May NY Cotton is trading at 64.08, down 0.77. Market chatter that demand needs to pick up to sustain any move higher has led to some pressure. The lower rates in China did little to help encourage buyers on Monday. Market talk that China may cancel some purchases is making the rounds.