According to the latest update from the International Cotton Advisory Committee (ICAC), global cotton stock levels are set to increase to 22m tonnes by the end of 2020/21. The increase in stock could be attributed to the stocks-to-use ratio decline by the COVID-19 pandemic.
Cotton consumption is expected to increase by 2% to 25.3m tonnes as the global economy continues to recover. Production is expected to increase by 5% to 25.5m tonnes, increasing in planted areas in the US and West Africa. Trade is expected to rise by 2% to 10m tonnes, with import anticipated increases in all major consuming countries.
However, China’s stocks are expected to decline as the rest of the world expands slightly. In terms of prices, The Secretariat’s current projection for the year-end 2019/20 average of the A Index has been revised to 81.9 cents per pound this month. The price projection for the year-end 2020/21 average of the A Index is 87.1 cents per pound this month.
