News
‘Cotton: Review of the World Situation’: Falling Consumption, Rising Stocks and Price Correlations
For Immediate Release
Date Posted: 23 June 2020
Executive Summary
Highlights from the June 2020 issue of the ‘Review’ include:
- An overview of global consumption and stock levels
- Analysis of recent developments in Turkey, Zimbabwe and the Latin America and Caribbean region
- A look at the correlation of prices in the Cotlook A Index and domestic cotton prices
- Four tables highlighting supply and use by country from 2018/19 through 2020/21
‘Cotton: Review of the World Situation’: Falling Consumption, Rising Stocks and Price Correlations
While the June 2020 edition of Cotton: Review of the World Situation’ does not focus exclusively on COVID-19, the impacts of the pandemic are impossible to ignore in its projections of falling consumption and rising stock levels and analysis of supply and distribution of cotton by country from 2015-2021.
The issue contains five feature stories and four tables in its 26 pages. In addition to an overview of current supply and demand by ICAC Statistician Lihan Wei, the June 2020 Review contains:
- An analysis of the correlation between prices in the Cotlook A index to domestic prices;
- Details regarding the impacts of COVID-19 on the Latin America and Caribbean (LAC) region; and
- Detailed overviews of recent developments in the cotton sectors of Turkey and Zimbabwe.
Global consumption for 2019/20 is expected to be 23 million tonnes, an 11.3% decrease from the previous season. With global production expected for 2019/20 at 26.2 million tonnes, a 2% increase from the previous season, ending stock levels are expected to increase to 21.75 million tonnes, the highest level in the past five seasons.
#CottonStopsCovid
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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.