News
Production, Consumption and Trade Are All Expected to Make Gains in 2021/22
For Immediate Release
Date Posted: 1 June 2021
Executive Summary
Highlights from the June 2021 Cotton This Month about the 2021/22 season include:
- Global production is expected to increase by 5.5%
- Global consumption is expected to increase by 2%
- Global trade is expected to increase by 2%
- Global ending stocks are expected to increase as stocks-to-use ratio declines
Production, Consumption and Trade Are All Expected to Make Gains in 2021/22
Decreases in Brazil, India and the USA have caused a reduction in the 2020/21 global production estimate but cotton production — along with consumption and trade — are all expected to increase in 2021/22:
- Production is expected to increase by 5% to 25.5 million tonnes with increases in planted area in the United States and West Africa.
- Consumption is expected to increase by 2% to 25.3 million tonnes as the global economy continues to recover.
- Trade is expected to increase by 2% to 10 million tonnes with import increases expected in all major consuming countries.
Global ending stocks are also expected to increase to 22 million tonnes as the stocks-to-use ratio declines to 0.87, although China’s stock is expected to decrease as the rest of the world’s expands slightly.
In terms of prices, The Secretariat’s current projection for the year-end 2019/20 average of the A Index has been revised to 81.9 cents per pound this month. The price projection for the year-end 2020/21 average of the A Index is 87.1 cents per pound this month.
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 2021. The next Cotton This Month will be released on 1 July 2021.
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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.