Excess supply and prolonging trade war with China is affecting the global cotton market.
Browsing: Global Cotton
Due to uncertainties in the world economy and trading market, the International Cotton Advisory Committee (ICAC) Secretariat has revised its global consumption forecast for 2018/19 downward to 27.5 million tonnes.
The International Cotton Advisory Committee, Washington, has announced recently it expects global cotton consumption to increase in the coming year.
Recovery continues in cotton production for 2017-18 with a projected 11 per cent growth due to increased area to a projected 25.4 million tonne (MT).
World’s cotton harvested area in 2016-17 is projected at about three per cent below last season. For India-the leading cotton producer-the crop is forecast at 27 million bales in 2016-17, two per cent above 2015’s six-year low.
The Cotton Association of India (CAI) has released its first estimates of the crop for the 2015-16 season beginning on October 1 at 380 lakh bales of 170 kg each. This is almost similar to the output of 382 lakh bales achieved in the 2014-15 season.
At the end of 2013-14, international cotton prices were around 80 cents and have continued falling in the first two months of the new season. Given the predicted 1.8 million tonnes of surplus cotton production and changes in China´s cotton policy, prices are unlikely to rise to the levels seen in the last two seasons.