Cotton production in some major cotton-producing countries has been reduced in 2019/20. Global cotton production is expected to decline. The growth in cotton exports in Latin America may meet additional market demand.
The latest monthly report of the International Cotton Advisory Committee (ICAC) pointed out that Turkey’s cotton production was reduced to 815,000 tons, and Pakistan’s cotton production was reduced to 1.35 million tons. Therefore, the two countries Import volume will increase to 818,000 tons and 967,000 tons.
ICAC said that Latin America should be able to meet some of the additional demand. Brazilian cotton output is expected to remain at 2.76 million tons, and exports are expected to grow by 19% to 1.7 million tons. In addition, Argentina’s cotton output is expected to increase to 358,000 tons, an increase of 39%, and imports are expected to increase by 57% to 186,000 tons.
ICAC said that China will remain the world’s largest cotton importer, with imports reaching 1.8 million tons, although this figure will fall by 14% year-on-year.
Global cotton trade is expected to grow by 2% this season, reaching 9.4 million tons.
ICAC is an association composed of cotton production, consumption and trading countries. Based on current production and consumption estimates, cotton prices should rise by the end of this season. There was a slight increase.
The Secretariat currently forecasts the year-end average price of the CotlookA cotton price index, which has been revised to 80 cents per pound.
