New figures show global cotton stock levels are set to increase to 22m tonnes by the end of 2020/21 as the stocks-to-use ratio declines.
According to the latest update from the International Cotton Advisory Committee (ICAC), China’s stocks, however, are expected to decline as the rest of the world’s expands slightly.
Cotton consumption is expected to increase by 2% to 25.3m tonnes as the global economy continues to recover.
Decreases in Brazil, India and the US have caused a reduction in the 2020/21 global production estimate but cotton production — along with consumption and trade — are all expected to increase in 2021/22:
Production is expected to increase by 5% to 25.5m tonnes, with increases in planted areas in the US and West Africa.
Trade is expected to rise by 2% to 10m tonnes with import increases expected in all major consuming countries.
In terms of prices, The Secretariat’s current projection for the year-end 2019/20 average of the A Index has been revised to 81.9 cents per pound this month. The price projection for the year-end 2020/21 average of the A Index is 87.1 cents per pound this month.