Cotton Outlook Figures Indicate Rising Surplus In 2012/13

BIRKENHEAD, United Kingdom — August 23, 2012 — Adjustments to Cotton Outlook’s supply and demand
estimates during the past month result in an increase in the implied surplus of production over
consumption, during both 2011/12 and 2012/13 seasons.

For the season just ended, the margin is widened by just over 200,000 tonnes, to 5,224,000.

The implied oversupply for 2012/13 has risen by 1,085,000 tonnes since July, and now stands
at over three million tonnes.

The most substantial revisions concern prospective production and consumption in China, which
are raised by 424,000 and lowered by 700,000 tonnes, respectively.

Posted on August 28, 2012

Source: Cotlook Ltd.