Highlights from the August 2021 Cotton This Month include:
Expected revival in world cotton production in 2021/22 season
The coronavirus might have won the battle in 2021/21, driving down global cotton production to 24.2 million tonnes, a decline of 7% from the season before. But the industry has responded well and production is expected to rise by 3% in 2021/22 to reach 25 million tonnes.
The increase will be led by:
On the bright side, global cotton consumption and trade have seen a welcome recovery in the 2020/21 season, with consumption increasing by 12.4% to reach 25.5 million tonnes, with a similar trajectory projected for 2021/22. But Covid-19 has proven itself to be very stubborn; recent reports from Bangladesh and Vietnam indicates that Covid infections are on the rise, so lockdown-induced factory closures and shipping problems are still major threats, leaving manufacturers scrambling to fill their orders.
The Secretariat’s current price forecast of the season-average A index for 2021/22 ranges from 73 cents to 125 cents, with a midpoint at 95.43 cents per pound.
Cotton This Month is published at the beginning of the month with the Cotton Update published mid-month. The Cotton Update, which is included in the Cotton This Month subscription, is a mid-month report with updated information on supply/demand estimates and prices. The next Cotton Update will be released on 16 August 2021. The next Cotton This Month will be released on 1 September 2021.
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Please contact the author, Ms Parkhi Vats, with questions on this report.
About the International Cotton Advisory Committee (ICAC)
Formed in 1939, the ICAC is an association of cotton producing, consuming and trading countries. It acts as a catalyst for change by helping member countries maintain a healthy world cotton economy; provides transparency to the world cotton market by serving as a clearinghouse for technical information on cotton production; and serves as a forum for discussing cotton issues of international significance. The ICAC does not have a role in setting market prices or in intervening in market mechanisms. For more information, please visit www.icac.org.