31/08/2022 – Cotton — auf Deutsch lesen
Season 2022/23 marked by uncertainty
The volatility with cotton prices, global macroeconomic conditions, and the turmoil in Eastern Europe are creating uncertainties in cotton demand.
Overview of the planting and harvesting times of the eight major cotton producing countries © Bremer Baumwollbörse
With the beginning of August, a new cotton season has started. Currently, the ICAC expects a world cotton production of 25.81 million tonnes in 2022/23 compared to 25.4 million tonnes in the previous season. Cotton consumption is projected to reach 26.11 million tonnes.
The ICAC expects the US crop to be reduced by up to 800,000 tonnes, compared to last season, as a direct result of the losses in Texas. If that happens, US production in 2022/23 will be lower than it was in the 2011/12 season. Brazil, Australia, Argentina and West Africa all have the potential to capitalise on the increases they’ve made in their production capacity over the last several seasons. Increased area and increasing yields could help fill the void being created by the unfortunate situation in the United States.
On the macroeconomic level a few interdependent factors may have an impact on cotton demand: The volatility with international cotton prices, global macroeconomic conditions, and the turmoil in Eastern Europe. Inflation levels are elevated globally and people are nervous. This nervousness may be enough to slow the consumption of discretionary goods, including textiles and clothing.
Source: ICAC, Cotton this Month, August 2022
Bremen Cotton Exchange – Bremen Cotton Report Issue 31/32 2022
