The world price of cotton will rise in the 2021/2022 season due to higher consumption

Published Mar 20, 2021

Tridge summary

The USDA report forecasts a 4.1% increase in global cotton consumption and a 4.7% increase in production, led by Pakistan, Australia, Brazil, the United States, and West African countries. US cotton production is expected to rise by 17% in the 2020/2021 season, while China's imports are projected to remain steady. Overall, world cotton production is expected to decrease by 7.19% in the current season, with variations in production figures for China, India, Brazil, Pakistan, and Turkey. Domestic cotton consumption is anticipated to rise significantly, especially in China, and so are world imports, with China driving the increase. The USDA also expects a decrease in surpluses in Brazil and the US, but an increase in China's surplus, indicating a slight rebound from the previous season.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

This is reflected in the latest report from the North American Department of Agriculture (USDA), on the situation of the world cotton market, which foresees a rebound of 4.1% in consumption and 4.7% in production, due to the significant boost to be experienced in Pakistan, Australia, Brazil, the United States, and West African countries. In the initial balance of the next harvest, it is observed that in the United States, cotton production will increase by 17% compared to the 2020/2021 season, consumption will recover, exports will remain stable and final stocks will be at the levels of ago five years. As for China, it will import the same amount as in the 2020/2021 season, in which it registered the highest level in seven years, and according to the USDA it shows a growth in the production of yarns and fabrics, together with a decrease in their production. A worker prepares cotton to be pressed in the state of Bahia (Brazil). Efeagro / Sebastiao Moreira Domestic consumption in ...

Source: PEefeagro