News

Global Consumption Projected to Reach Record High in 2019/20

For Immediate Release

Date Posted: 1 April 2019

Executive Summary

Highlightsfrom the April edition of Cotton This Month regarding the 2019/20 season:

Despite persistent challenges, global cotton consumption should reach an all-time high in 2019/20
World production should rise to 27.6 million tonnes, boosted in part by a 6% increase in global yields
Ending stocks are projected to increase slightly from 2018/19 to 17.7 million tonnes
ICAC’s price projection for the A Index at the end of 2019/20 is 81.25 cents per pound, with a forecast range between 60.71 to 94.23 cents per pound

GlobalConsumption Projected to Reach Record High in 2019/20

Whilethe global cotton industry continues to face a number of challenges — tradeuncertainties, slowing economic growth and weakening demand — consumption is stillexpected to set an all-time high in 2019/20, reaching 27.3 million tonnes.

Thatrecord-breaking number still won’t be enough to keep global ending stocks fromrising by the end of the 2019/20, however. Total production is projected toreach 27.6 million tonnes, a number boosted in part by a 6% increase in globalyields, which should leave 17.7 million tonnes in the world’s warehouses at theend of next season.

According to ICAC’s priceprojection, changes in market fundamentals — particularly thestocks-to-mill-use (SMU) ratio outside of China — will drive a decrease in theA Index, which is now expected to drop to 81.25 cents per pound in 2019/20.

Published at the start of each month by the Secretariat of the International Cotton Advisory Committee,

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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.