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Cotton fibre prices, production and consumption forecasts, August 2021
published in Issue 209, August 2021
This report provides comprehensive analyses and forecasts of cotton fibre prices, production and consumption, and it equips strategic planners with information which enables them to predict the extent to which future changes in the cotton fibre price are likely to affect their businesses. In addition, it contains a detailed analysis of trends in cotton fibre prices and regional patterns of cotton fibre supply and demand for the 2020/21 season (August 1, 2020-July 31, 2021), and it provides an outlook for the 2021/22 season. Demand for cotton fibre was up in the 2020/21 season, reflecting a rebound after consumption fell in the previous season as a result of a slowdown in global economic growth and disruption to supply chains resulting from the COVID-19 pandemic. Meanwhile, production of cotton fibre was down, and, as a result, supply fell below demand and stock levels declined. Given these developments, there has been upward pressure on prices—exacerbated by sanctions on cotton produced in Xinjiang province, China. Looking ahead to the 2021/22 season, global cotton fibre consumption is expected to rise as the global economy continues to recover. At the same time, production of cotton fibre is predicted to rise too. However, it will remain below consumption and so stocks will fall again. Consequently, there is expected to be a further upward pressure on the cotton price.
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