News
Stocks to Reach Highest Level in Five Years as Consumption and Trade Suffer during Pandemic
As noted last month, the May, June and July issues of Cotton This Month and Cotton Update are being offered free of charge to all. It is part of the ICAC's COVID-19 strategy to provide as much information as possible to hold the supply chain together until the pandemic is over.
For Immediate Release
Date Posted: 1 June 2020
Executive Summary
Highlights from the June 2020 Cotton This Month include:
Date Posted: 1 June 2020
Executive Summary
Highlights from the June 2020 Cotton This Month include:
- Global consumption is expected to decline 11.3% in 2019/20
- If production rises 2% this season as projected, ending stock levels will swell to 21.75 million tonnes
- Global trade is forecast to fall to 8.34 million tonnes in 2019/20
Stocks to Reach Highest Level in Five Years as Consumption and Trade Suffer during Pandemic
It appears that the expected impacts of the COVID-19 pandemic on this season are, unfortunately, developing the way everyone feared they would:
- Consumption is expected to be 23 million tonnes in 2019/20, down 11.3% from the prior year.
- Global trade is projected to decline 9.6% to 8.34 million tonnes.
- With production expected to increase by 2% to 26.2 million tonnes, stocks could swell to 21.75 million tonnes — the highest they’ve been in five years.
China, the world’s top consumer, is expected to fall 12% to 7.25 million tonnes. India is projected to suffer its own 12% slide to 4.75 million tonnes. Others feeling the pain include Pakistan (-7%), Turkey (-8%), Vietnam (-8%), Brazil (-11%) and Bangladesh (-25%).
Global trade is expected to fall to 8.34 million tonnes in 2019/20, a 9.6% decrease from the previous season. Recovery for the coming 2020/21 season is currently expected to be modest under the current IMF projections for economic recovery.
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 15 June 2020. The next Cotton This Month will be released on 1 July 2020.
PLEASE NOTE: During this time of crisis, nothing is more important than information you can trust — which is why the ICAC is making both Cotton This Month and Cotton Update free to every for May, June and July.
If you are a subscriber to ‘Cotton This Month’, please access your account with your user name and password by clicking here.
To subscribe to ‘Cotton This Month’, please click here, then click ‘Paid Publications’ and select the version you want to subscribe to.
Please contact the author, Ms. Lihan Wei, with questions on this report.
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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.
Global trade is expected to fall to 8.34 million tonnes in 2019/20, a 9.6% decrease from the previous season. Recovery for the coming 2020/21 season is currently expected to be modest under the current IMF projections for economic recovery.
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 15 June 2020. The next Cotton This Month will be released on 1 July 2020.
PLEASE NOTE: During this time of crisis, nothing is more important than information you can trust — which is why the ICAC is making both Cotton This Month and Cotton Update free to every for May, June and July.
If you are a subscriber to ‘Cotton This Month’, please access your account with your user name and password by clicking here.
To subscribe to ‘Cotton This Month’, please click here, then click ‘Paid Publications’ and select the version you want to subscribe to.
Please contact the author, Ms. Lihan Wei, 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.