After reaching a high in January 2020, international cotton prices fell through February and March

After reaching a high in January 2020, international cotton prices fell through February and March

Global cotton consumption in 2019/20 is set to suffer a 12% decline as demand plummets due to the Covid-19 pandemic, with the crisis expected to weigh on cotton prices into the 2020/21 season.

After reaching a high in January 2020, international cotton prices fell through February and March. This month, the price projection for the year end 2020/21 average of the A Index is 62.8 cents per pound.

The latest projections from the International Cotton Advisory Council (ICAC) show a 12% decline in consumption for 2019/20 to 23m tonnes.

"Even plummeting prices aren't enough to offset Covid-19's impact on global cotton consumption — but the situation could improve quickly, assuming the world gets the pandemic under control," the inter-governmental group says.

It warns, however, cotton consumption will continue to face stiff competition from synthetic fibres.

The current 2020/21 cotton consumption forecast is 23.9m tonnes, representing a 5% increase from the previous season. Cotton production for 2020/21, on the other hand, is projected to move in the opposite direction, posting a 5% decrease to 24.8m tonnes largely due to 2m hectare decrease in global area.