Groz-beckert
Coats digital transformationCoats digital transformationCoats digital transformationCoats digital transformation
Coats digital transformation
Groz-beckert
spot_img
Coats Gigital

Global cotton prices forecast to fall in 2019-20, 2020-21

Cotton prices will remain weak in the 2019-20 and 2020-21 seasons as supplies of cotton outstrip demand and surpluses grow, according to a report in issue 200 of ‘Textile Outlook International’ by global business information firm Textiles Intelligence. One factor affecting cotton price is weak demand caused by uncertainty arising from the US-China trade war.

Until relations between the two countries improve, demand for cotton will remain suppressed and so will the cotton price, unless there are major revisions to crop estimates or there are signs of greater strength in the global economy, the company said in a press release.

In fact, the average price of cotton has been falling since the beginning of 2018-19, and in 2019-20 it is forecast to fall further to only 76 US cents/lb, which would be 11 US cents/lb lower than the average for 2018-19.

The continued weakness in cotton prices has been reinforced by an increase in the size of the global stockpile that has reversed recent declines. Indeed, surpluses are growing in the main producing nations, and stock levels at the end of the 2019-20 season (July 31, 2020) are expected to be 1.3 per cent higher than they were at the beginning (August 1, 2019).

Global consumption of cotton is expected to rise in the 2019-20 season as Chinese demand stabilises. But there is also expected to be a rise in global cotton production during 2019-20 as yields in India rebound and plantings increase in the United States. As a result, global cotton production will exceed demand, stocks will rise and this will put downward pressure on the cotton price, the report said.

This pressure on prices will continue into 2020-21 as demand is forecast to remain weak while yields are expected to improve as a consequence of better weather conditions. In fact, the global cotton crop in 2020-21 is forecast to reach its second-highest level ever.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img
spot_img
spot_img
spot_img
spot_img
spot_img
spot_img
spot_img
AMEC AMETEX
spot_img
spot_img
spot_img
spot_img
spot_img
GO WIPES

Related News

Saurer to Showcase Cutting-Edge Spinning and Twisting Technology at International Textile Forum in Tajikistan

Saurer Group is pleased to announce its participation in...

Cameroon’s Cotton Comeback: From Fiber to Fashion and Economic Transformation

After years of decline, Cameroon’s cotton sector is experiencing...

Cotton ConneXions Hong Kong Bridges Global Cotton Industry Toward Innovation and Sustainability

Over 255 industry leaders from 124 companies—including more than...

Tunisia Rises as Sustainable Sourcing Hub for Recycled Cotton

As environmental standards in the fashion industry continue to...

ICAC Releases 2025/26 Global Cotton Market Forecast

The International Cotton Advisory Committee (ICAC) has published its...

Circ to build $500 Million Cotton, Polyester Recycling Plant in France

Will be biggest plant recovering polyester and cotton ...

Afreximbank Reaffirms Support for Cotton Sector Transformation Across Africa

The African Export-Import Bank (Afreximbank) has renewed its commitment...

New Research Breakthrough Makes Hemp a Cotton-Compatible Textile Fiber

A major advancement from the University of Zagreb’s Faculty...

Senegal Sets Ambitious Goal to Boost Cotton Seed Production by 66% in 2025

Senegal is targeting a significant surge in cotton seed...

ITFC Signs €106 Million Agreement to Boost Burkina Faso’s Cotton and Fabric Sector

The International Islamic Trade Finance Corporation (ITFC) has reaffirmed...

Recover and Intradeco Launch Recycled Cotton JV in Central America

Recoverâ„¢, the leading materials science company and large-scale producer...

USA Global Trade Launches Binational Textile Initiative to Strengthen U.S.–Latin America Supply Chains

USA Global Trade LLC, a Miami-based sourcing and trade...