Cotton's Slow Period Continues ... But Planting Decisions Are Coming Soon


Date Posted: 1 June 2023

Executive Summary
The June 2023 edition of Cotton This Month:
  • Acknowledges that the industry is in a quiet period, with little movement in estimates for supply and consumption
  • Predicts that the quiet period is likely to continue for the next month or two at most, since farmers need to make decisions on what to grow
  • Takes a look at the history and development of the cotton industry in Lubbock, Texas

Cotton's Slow Period Continues ... But Planting Decisions Are Coming Soon
There has been little movement in the global cotton market recently, with projections for production coming in at 24.51 million tonnes and consumption expectations remaining unchanged from last month at 23.79 million tonnes. It would seem that the lull will likely continue for another month or two at most, because that's when farmers need to decide what they're going to plant for the year.

Even trade — while considerably lower than it was at this point last year — remains largely unchanged since we reported on it in May. It is true that trade data lags real time by several months due to the need to compile and assess the global numbers, but there are few indications that there will be significant changes to trade before the season ends on 31 July 2023.

This month's CTM also takes a long look at the history of cotton in West Texas, the heart of the US cotton industry. The same approach was taken with India in the April 2023 CTM; it is our step-by-step approach to building national cotton industry profiles that will be incorporated in the ICAC Data Dashboard in coming months, giving users detailed information on the major cotton producing and consuming countries.  

For the most up-to-date statistics, please refer to the Data Dashboard. It is updated with new data constantly and that new information is immediately reflected in the Dashboard, making it a valuable, up-to-date resource all month long.
Price Projections
The Secretariat’s current price forecast of the season-average A index for 2022/23 ranges from 96.36 cents to 106.47 cents, with a midpoint of 100.78 cents per pound. 

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Please contact the author, ICAC Data Scientist Matthew Looney, with questions on this report.

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 This Month will be released on 3 July 2023.
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. In addition, members can take advantage of the ICAC’s global network of cotton researchers, whose expertise covers the supply chain from farm to textile manufacturing, and have free access to its cutting-edge technologies like the voice-based app and virtual technology cotton training programme. Committed to ensuring cotton’s continued sustainability, the ICAC is the only intergovernmental commodity body covering cotton that is recognised by the United Nations. For more information, please visit www.icac.orgTwitter or LinkedIn