Global cotton production & consumption to improve: TexPro

Global cotton prices have been rising since July 2021 due to global demand. The surge has been sustained as the World Agricultural Supply and Demand Estimates (WASDE) are following upward movements on the Intercontinental Commodity Exchange’s December 2021 contract.

Prices of Indian cotton have been rising owing to strong domestic and global demand, coupled with lower supplies. Cotton prices in China also escalated despite robust sales from the State Reserve.

Global cotton production was 26.43 million metric ton in market year (MY) 2019-20, which dropped by 7.60 per cent to 24.42 million metric ton in MY 2020-21, according to Fibre2Fashion’s market analysis tool TexPro. But it is expected to recover to 26.52 million metric ton in MY 2021-22 with a rise of 8.60 per cent.

Global cotton imports were 8.89 million metric ton in MY 2019-20 and 10.67 million metric ton in MY 2020-21. They are likely to decline to 10.15 million metric ton in MY 2021-22, recording a drop of 4.87 per cent.

Cotton exports globally were 8.98 million metric ton in MY 2019-20, which increased to 10.54 million metric ton in MY 2020-21 with a rise of 17.37 per cent. Exports are now expected to decline by 3.70 per cent to 10.15 million metric ton in MY 2021-22.

The global cotton consumption went up by 17.29 per cent from 22.44 million metric ton in MY 2019-20 to 26.32 million metric ton in MY 2020-21, according to TexPro. Now it is expected to increase further to 27.02 million metric ton in MY 2021/22 with a surge of 2.66 per cent.

Since July 2021, cotton prices have been rising at different growth rates in different regions. Cotton prices increased by 35.11 per cent in Cotlook A - Index, 31.22 per cent in Shankar-6 (28 mm), 37.65 per cent in Southeast US cotton, 40.46 per cent in China Cotton Index and 17.02 per cent in Brazil Cotton Index from July 1, 2021 to November 12, 2021.

India, China, Pakistan, Bangladesh, Vietnam and Turkey were the major cotton consumers in the world between MY 2017-18 and MY 2020-21.

India, China, the US, Brazil, Pakistan and Australia were the major cotton producers in the world between MY 2017-18 and MY 2021-22.

Fibre2Fashion News Desk (KD)