According to the International Cotton Advisory Committee, global cotton production should grow by 8 percent in the current 2011-12 season, reaching 26.8 million tons. Conversely, consumption is expected to drop by as much as 2 percent to 23.9 million tons. ICAC, an intergovernmental group, expects a surplus of 2.9 million tons, which would increase global cotton stocks to 11.9 million tons by the end of the season, after two seasons of relatively low stocks. The bulk of this year's crop, almost 40 percent, is going to China, which is rebuilding its national reserve, which was almost depleted at the end of 2010-11. From Oct. 8 to Dec. 30, the country bought 2.1 million tons, and continues to buy daily. China's national reserve could grow by 3 million tons – 11 percent of total production for 2011-12. Its program to buy cotton runs through March. Outside China, the ICAC says cotton stock will increase by about 26 percent to 8.7 million tons, the largest increase in four years.

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