Global cotton production is expected to decrease in some major producing countries in the 2019/20 season with a rise in export growth from Latin America tipped to answer the additional demand.
In its latest monthly update, the International Cotton Advisory Council (ICAC) says production in Turkey is being revised downward to 815,000 tonnes and Pakistan to 1.35m tonnes. As a result, imports will increase for both countries to 818,000 tonnes and 967,000 tonnes, respectively.
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The organisation says Latin America should meet some of that additional demand with Brazil’s production expected to remain high at 2.76m tonnes and exports tipped to grow by 19% to 1.7m tonnes. In addition, Argentina is projected to increase its production to 358,000 tonnes, posting a gain of 39%, while imports are expected to increase by 57% to 186,000 tonnes.
China, meanwhile, should remain the world’s top importer at 1.8m tonnes, although that figure would represent a year-over-year decline of 14%, the ICAC says.
Global cotton trade is projected to expand by 2% in the season, reaching 9.4m tonnes.
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ICAC, an association of cotton producing, consuming and trading countries, adds at current estimates of production and consumption, cotton prices should make modest gains through the end of the season.
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By GlobalDataThe Secretariat’s current price projection for the year-end average of the Cotlook A Index has been revised to 80 cents per pound.
