Published by the International Cotton Advisory Committee, the Cotton This Month report informs, estimate for world cotton production for the 2021/22 season has been revised to 24.9 million tonne, with area under cotton also revised to 32.8 million hectares.

Cotton prices are trending upward with the Cotlook A index season average at 101.34 cents per lb. Cotton prices are also high in China, with the CC Index averaging 126 cents/lb since the season began.

 

Opening of economies and an increase in consumer demand that occurred when the vaccinations began spreading across the globe indicate that consumption doesn’t appear to be slowing down.

 

With demand exceeding production, ending stocks are expected to decline for the second year in a row to stand at 19.7 million tonne in 2021/22, 5 cent lower than the previous season.

 

As a result of these bullish factors, the Secretariat’s current price forecast of the season-average A index for 2021/22 ranges between 76 cents to 126 cents, with a midpoint at 98.20 cents per pound.

 

Source: fashionatingworld.com