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Global cotton production rises expected cotton prices fall

December 08, 2023
According to the International Cotton Advisory Committee (ICAC), the increase in global cotton production in the coming year will help replenishment, and cotton prices are expected to fall.

The ICAC pointed out that the 2010/2011 cotton price index (Cotlook A Index) doubled in the quarter average selling price, reaching a record high of 1.64 US dollars per pound; also due to the recent surge in prices, forecasting global cotton production in 2011/2012 will increase by 8%. 26.9 million tons.

Most of the major cotton producing countries plan to increase cotton production, especially after the cotton production in India and Australia reaches a record level. However, due to a severe drought in Texas, the cotton output of the United States may drop by as much as 12% to 3.5 million tons.

In terms of cotton mill use, due to increased cotton supply, it is expected that there will be some new growth; also due to competition with chemical fiber, the price is relatively high, and it is expected to grow only slightly by 2%.

Global cotton surplus is expected to be 1.8 million tons in 2011/2012, which will cause global cotton stocks to recover 20% to reach 1.09 million tons, raising the stocks-to-use ratio to 43%, higher than 2010/ 37% of 2011.

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