Projections put cotton consumption below production in the season ahead
In its latest report, cotton sector information resource Cotlook is estimating global production of more than 25.9 million tonnes for the 2023-2024 cotton season.
It said this was slightly higher the previous estimates and that the increase was in spite of reduction in its estimates for China.
Concerns for the next Chinese cotton crop stem from calculations that farmers there reduced the area sown to cotton in spring 2023 by around 9% compared to the previous year. Cotlook said this was a reaction to poor returns for the 2022-2023 season.
It said there were also doubts about yield in China because there was unhelpful cool weather at the time of planting, followed by spells of extreme heat.
An increase in the projection for the next Brazilian cotton crop helped offset these concerns.
Liverpool-based Cotlook’s projection for consumption of cotton in the season ahead is 24.25 million tonnes, which it said would mean a substantial addition to global stocks in July 2024.
It said global mill demand is low. “For months now, the world cotton textile market has been suffering the effects of global economic slowdown,” Cotlook concluded. “Inflation, rising interest rates and a general lack of consumer and business confidence have combined to undermine demand from the retail end of the supply chain back to the spinning mill.”
