ICAC Executive Summary
Posted : June 04, 2022

ICAC Executive Summary

Lower Production Expected to Ease Pressure on Prices in 2020/21

Highlights from the December 2020 Cotton This Month include

*The global production estimate has been lowered to 24.7 million tonnes for 2020/21

*The global consumption estimate remains steady ay 24.3 million tonnes

*Global trade is expected to climb to 9.4 million tonnes

*Ending stocks for the 2020/21 season are expected to decline to 21.7 million tonnes, slightly easing pressure on prices

Lower Production Estimate to Ease Pressure on Prices in 2020/21

It seems as though cotton prices have been under pressure forever — certainly since the pandemic began — but a projected reduction in global production, from 24.9 million tonnes to 24.7 million tonnes, could ease that pressure slightly due to lower year-ending stocks in 2020/21.

While the recovery of consumption has been slow and is expected to remain steady at 24.3 million tonnes next season, global trade is expected to do more than improve — it’s expected to exceed pre-COVID levels, reaching about 9.4 million tonnes.

The USA and China are still engaged in a trade war, although the phase-one trade deal is mitigating tensions somewhat. Under the current terms of the agreement, China would purchase record levels of US agricultural products. From the April to September period, China has imported 65% more cotton from the United States over the preceding period. With Phase One of the trade agreement going into effect on 20 February 2020, the increase in imports was anticipated to be seen in April given the time to react and shipments to be received by China customs.

Latest News
U.S. EXPORT SALES
  • For Week Ending 28-Jul-2022 2021-2022 Net Upland Sales -1,12,400 Upland Shipments 2,79,700 Ne
Shurely on Cotton
  • Prices Should Begin to Find Direction Soon Aug 05, 2022 Prices have recovered—it’s not yet
Gujcot Weekly Report
  • Market Movement from 01st Aug 2022 to 06th Aug 2022. • NY future was down on Monday, stayed sid