04/08/2023 – Bremen Cotton Exchange — auf Deutsch lesen
Cotton production worldwide
The latest issuo No. 29/30 of the Bremen Cotton Report has been published. The report gives an overview of how China, India and the USA are doing in the international cotton market with detailed information on developments and trends. Here is a quick summary:
Developments in the international cotton market (China, India and USA). © Irina Sokolovskaya/stock.adobe.com
2022/23 China imports fall to five-year low
China`s cotton imports in 2022/23 are predicted to fall to a five-year low of 1.4 m. t due to increased domestic production, lower domestic prices relative to foreign ones, and reduced for goverment reserves. Domestic use relative to production has become a significant factor driving import demand. The recent crop surged nearly to 6.7 m t while domestic use is forecasted just below the 5-year average at 7.7 m t. China`s state reserves of foreign cotton are considered high after three years of large purchases, mostly from the U.S. Imports in season 2023/24 are forecast to rise to 2.1 m t, replenishing state inventories.
(Source: USDA, World Markets and Trade, July 2023)
India: Cotton production slightly up in 2023/24
USDA`s estimates India`s cotton area at 12.7 m ha due to delayed monsoon rains. Cotton`s drought tolerance makes it an attractive alternative for farmers as the planting window for alternative crops shortens. Haryana`s sowing is underway, with a 2% decrease in cotton area. Global textile demand slows down and afffects consumption, trade and cotton yarn prices. India`s cotton imports reach 218,000 t while exports are forecasted at 522,000 t. Rajasthan has emerged as a major cotton growing state with a 27% increase from last year, while Punjab has lost 32% area. As a result India`s cotton production is estimated at 5.6 m t with slightly lower yields.
(Source:USDA/FAS, Gain Report, July 2023)
USA: July projection
The U.S. cotton production projection for 2023/24 remains at 3.6 m t with a 14% increase from the previous year. However it falls 440,000 t below the five-year average. The Southeast is forecast to account for 21.5% cotton area, while the Delta region is predicted to account for 15% of the U.S. upland cotton area. Upland cotton planting in the West are forecast to decrease to 53,000 ha. Extra-long-staple (ELS) cotton acreage is expected to drop to 40%. Despite reduced cotton planted area due to competing crop prices, higer harvested acreage is anticipated due to drought reducing rainfall.
(Source: USDA, Cotton & Wool Outlook, July 2023)
For more detailed information please see Bremen Cotton Exchange – Report No. 29-30/2023, Bremen Cotton Report
