ICAC - World Cotton Supply and Distribution
Posted : April 26, 2019

Global Consumption Projected to Reach Record High in 2019/20

1 April 2019

Executive Summary

Highlights from the April edition of Cotton This Month regarding the 2019/20 season:

·Despite persistent challenges, global cotton consumption should reach an all-time high in 2019/20
·World production should rise to 27.6 million tonnes, boosted in part by a 6% increase in global yields
· Ending stocks are projected to increase slightly from 2018/19 to 17.7 million tonnes
· ICAC’s price projection for the A Index at the end of 2019/20 is 81.25 cents per pound, with a forecast range between 60.71 to 94.23 cents per pound

 

Global Consumption Projected to Reach Record High in 2019/20
 

While the global cotton industry continues to face a number of challenges — trade uncertainties, slowing economic growth and weakening demand — consumption is still expected to set an alltime high in 2019/20, reaching 27.3 million tonnes.
That record-breaking number still won’t be enough to keep global ending stocks from rising by the end of the 2019/20, however. Total production is projected to reach 27.6 million tonnes, a number boosted in part by a 6% increase in global yields, which should leave 17.7 million tonnes in the world’s warehouses at the end of next season.
According to ICAC’s price projection, changes in market fundamentals — particularly the stocksto-mill-use (SMU) ratio outside of China — will drive a decrease in the A Index, which is now expected to drop to 81.25 cents per pound in 2019/20.

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