Global cotton demand in the year ending this month will be 1.7 percent lower than estimated in June at 23.864 million metric tons, almost matching world production of the fiber, researcher Cotlook said.

Output will come to 23.882 million tons, little changed from the month-ago forecast, it said in a report today. Cotlook lowered consumption estimates by 2.2 percent for India, 0.8 percent for Brazil and 0.4 percent for Turkey. Usage in the coming year will be 3.5 percent below JuneΆs estimate at 24.558 million tons, the report shows.

“The result is to place the seasonΆs supply and demand broadly in equilibrium,” Cotlook said. Lower consumption in the coming year “far outweighs a net fall in the production figure, and sharply increases the extent to which supply is expected to exceed demand during the season ahead,” it said.

Cotton for December delivery fell 1.7 percent to 99.08 cents a pound by 12:34 p.m. on ICE Futures U.S. in New York. Futures have dropped 32 percent this year as stockpiles are expected to surge.