Latest global cotton update provided by ICAC

The International Cotton Advisory Committee (ICAC) has released its latest global outlook for June.

ICAC said on a global level, the production and consumption ratios have inverted, causing global consumption to now exceed production by 265,000 tonnes.

Consumption in the 2021/22 season remains unchanged at 26.16 million tonnes and production is now reported at 25.89 million tonnes. Global ending stocks have fallen to 20.34 million tonnes, the lowest in the past 3 seasons.

The 2022/23 season officially begins on 1 August, and ICAC says global area in the 2022/23 season is estimated to decrease by 1% to 32.78 million hectares, largely driven by an 11% decrease in area in the United States, a 5% decrease in Australia, and a 1% decrease in Brazil.

Global production for the 2022/23 season is projected to be 26.13 million tonnes, a 1% increase over the previous season.

Global consumption is currently projected at 26.09 million tonnes - a 0.25% decrease from the previous season.

The international reference price of cotton (Cotlook-A index) continues to remain elevated at near historic levels.