News
Global Cotton Trade Expands as Latin America Increases Exports
For Immediate Release
Date Posted: 3 February 2020
Executive Summary
Highlights from the February 2020 Cotton This Month include:
- The global cotton trade is projected to expand by 2% in the 2019/20 season
- China should remain the world’s top importer at 1.8 million tonnes
- Production expected to decrease in some major producing countries
- The current price projection for the year-end average is 80 cents per pound
Global Trade Expands with Export Growth from Latin America
The global cotton trade is projected to expand by 2% in the 2019/20 season, reaching 9.4 million tonnes. China should remain the world’s top importer at 1.8 million tonnes, although that figure would represent a year-over-year decline of 14%.
Production is expected to decrease in some major producing countries, with Turkey being revised downward to 815,000 tonnes and Pakistan to 1.35 million tonnes. As a result, imports will increase for both countries to 818,000 tonnes and 967,000 tonnes, respectively.
Latin America should meet some of that additional demand. Brazil’s production is expected to remain high at 2.76 million tonnes and exports are expected to grow by 19% to 1.7 million tonnes. Argentina also is projected to increase its production to 358,000 tonnes, posting a gain of 39%, while imports are expected to increase by 57% to 186,000 tonnes.
At current estimates of production and consumption, cotton prices should make modest gains through the end of the season. The Secretariat’s current price projection for the year-end average of the Cotlook A Index has been revised to 80 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 14 February 2020. The next Cotton This Month will be released on 2 March 2020. Please feel free to contact the author, Ms. Lihan Wei, with questions.
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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.