Global cotton trade is forecast higher and expected to approach 44.8 million bales in 2019-20, which would be six per cent above the 2018-19 estimate and the highest since 2012-13, according to the US department of agriculture (USDA). Increased exportable supplies for the US and Brazil are expected to support higher shipments from the two largest exporters.

While US cotton exports are expected to rise 15 per cent to 17.0 million bales in 2019-20, shipments from Brazil are forecast to increase 41 per cent to a record 8.2 million bales, the Economic Research Service of the USDA said in its ‘Cotton and Wool Outlook’ report of June 2019.

Exports from India are forecast at 4.8 million bales (+600,000 bales) in 2019-20, while shipments from Australia are projected to decrease significantly (-2.4 million bales) to 1.8 million bales as supplies decline dramatically due to production shortfalls, the report said.

Meanwhile, higher import projections for most of the leading importing countries are forecast for 2019-20. China—the leading importer—is expected to import 10.5 million bales of raw cotton, 20 per cent above the 2018-19 level and the highest since 2013-14. As sales from the national reserve have slowed, the growth in cotton mill use has prompted the need for increased imports.

Similarly, imports by Bangladesh and Vietnam are expected higher in 2019-20, as textile industries in these countries expand as well. For Bangladesh, cotton imports are forecast at 8.3 million bales (+300,000 bales) in 2019-20, while Vietnam’s imports reach 7.6 million bales (+500,000 bales).

In contrast, imports for Turkey and Pakistan are projected to decrease slightly in 2019-20 due mainly to larger crops. (RKS)

Fibre2Fashion News Desk – India

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