While global consumption in the coming season is expected to increase, the gains will be minimal, and production (26.
8 million tonnes) is expected to slightly outpace consumption (26.
5 million tonnes) in 2019/20.
The East Asia region will continue to lead the world in consumption, but growth likely will be modest, and China’s 2018/19 consumption total of 8.25 million tonnes is expected to remain unchanged in the coming season.
Several major consuming countries should see gains — including India, Bangladesh and Vietnam — but overall growth is slowing, and none of those countries is likely to see gains of 2% or more, with the exception of Indonesia (projected 4% growth over 2018/19).
With plentiful supplies and weak export demand, the price on the Cotlook A Index has dropped to its lowest point since 2016.
Cotton This Month is published at the beginning of the month with the Cotton Update published mid-month. The Cotton Update is a mid-month report with updated information on supply/demand estimates and prices. The next ‘Cotton Update’ will be provided on 15 October 2019. The next ‘Cotton This Month’ will be released on 1 November 2019.
