USDA forecasts significantly lower cotton production

The USDA's 2023/24 outlook expects a global cotton production decrease of 590,000 t to 24.8 m due to lower U.S. and Uzbekistan crops. U.S. production is estimated at 3.0 m tonnes, down 540,000 due to higher abandonment and lower crops. Global cotton consumption rises for the second month, hitting 25.5 m tonnes, driven by China's robust demand. Trade is forecasted at 9.6m tonnes, up 87,000, with Brazil's exportable supplies meeting China's import demand. Despite a 280,000-tonnes U.S. export drop, China's high prices are expected to support import growth to 2.2 m tonnes. Global ending stocks fall to 19.9 m tonnes, led by Brazil.

(Sources: USDA, World Markets and Trade/ World Agricultural Supply and Demand Estimates, August 2023)

Pakistan tracability is essential for sustainability

The need of traceability for sustainability in Pakistan's textile supply chains is emphasized by the All Pakistan Textile Mills Association (APTMA). Textiles must uphold social and environmental transparency as a crucial economic sector. Companies like Interloop and Sapphire are implementing solutions to meet the rising demand for traceability, which is being driven by ethical production and conscientious purchasing. However, sector-wide adoption lags and requires a legal foundation. For traceability to be successful, a central organization is essential for data tracking and business security.

(Sources: APTM)

LS and ELS cotton production to recover in 2022/23

LS/ELS cotton production saw a 20% drop to 308,000 t globally in 2021/22 due to reduced planted area, primarily in the US. However, a 40% recovery is expected for 2022/23, led by Egypt and the USA. Consumption increased by 3% to 465,000 t in 2021/22, with India, China, and Pakistan being major consumers. Exports decreased by 32% to 181,000 t in 2021/22, mainly by the USA and Egypt, with 148,000 t expected for 2022/23. Pakistan remained the major importer, followed by India and China, constituting about 90% of total imports.

(Sources: ICAC, Specialty Cotton Report, July 2023)

Bremen Cotton Report No. 31/23 – August 18,2023.