Here's why global cotton trade will rise in July-Dec 2021

30 Jul '21

2 min read

Pic: Shutterstock

Global cotton trade is expected to rise in the coming months of 2021 as the USDA’s forecast for US shows higher production, exports and ending stocks. The average farm price did not show a noticeable change and remained stable at around 75 cents per pound in 2021. Globally, cotton exports are expected to touch $1.12 billion in December 2021.

The global cotton trade showed a significant drop in Q2 2021, according to the USDA July 2021 report that showed higher consumption with lower trade and stocks. Prices of cotton textiles along with higher profit margins may support larger consumption in India and Vietnam. Additionally, low supply for exports from Brazil and low imports of China’s State Reserve may further impact the global cotton trade.

Cotton exports globally were to the tune of 0.87 billion kg, amounting to $1.44 billion in January 2021, which increased to 0.92 billion kg for $1.65 billion in March 2021. Exports declined by 37.04 per cent in June 2021 to reach $1.04 billion, while the quantity of exports took a fall of 39.28 per cent to reach 0.56 billion kg in the same month, according to Fibre2Fashion’s market analysis tool TexPro.

The total global cotton exports are expected to rise again to reach 0.62 billion kg, amounting to $1.12 billion in December 2021.

Fibre2Fashion News Desk (KD)

More Textiles News - Global...