Although world cotton production is expected to increase by 6% in 2021/22, the estimate of 25.7 million tons is still lower than it was pre-pandemic. Australia, Brazil and the USA all expect production to increase, which should offset the declines expected in the world’s top 2 producers, China and India.
Global cotton consumption is estimated at 25.9 million tons, and with ending stocks for 2020/21 having been revised downward to 20 million tons.
The industry saw some of the highest levels of trade ever in 2020/21, and the estimate of 10.29 million tons for the coming season shows that industry sentiment remains positive — especially given the robust levels of retail sales of textiles seen in many developed countries.
The current price forecast of the season-average A index for 2021/22 from the International Cotton Advisory Committee (ICAC), Washington, DC/USA, ranges from US$ 0.82-1.27 per pound.