Fall in cotton demand will lead to largest stock increase in a decade
05/05/2020
On this occasion, the reason for the excess owes much to covid-19 because mills have slowed or halted their activity in the last two months owing to falling demand from their customers and the cancellation of some contracts. In the last two months, as a result, Cotlook’s estimate of raw cotton consumption for 2019-2020 (October-September) has fallen by 2.75 million tonnes.
At the same time, however, its assessment of the 2019-2020 crop has remained unchanged because most of the crop in the northern hemisphere crop was already harvested and most of the crop in the southern hemisphere already planted “by the time of the onset of the pandemic”.
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