2023-24 Global Cotton Reserves To Be Highest In 83 Years
The International Cotton Advisory Committee (ICAC) has forecast that global cotton reserves in the 2023-24 season will be the highest ever projected in the 83-year history of ICAC data collection.
With global production in 2023-24 projected to increase by 3 percent to 25.41 million tons and consumption projected to decrease by 0.43 percent to 23.35 million tons, global stocks are poised to jump by 10 percent, after a 9 percent increase in 2022-23 season to 23.32 million tons.
“This level of global reserves is the highest ever projected in the 83-year history of ICAC data collection on cotton,” ICAC said in a press release.
China’s stocks in 2023-24 are expected to jump to 9.16 million tons, while the rest of the world’s warehouses are expected to swell to 14.5 million tons.
“With this amount in reserve, it is expected that the Cotlook A-Index will remain between 85 and 95 cents per pound for the remainder of the 2023-24 season,” ICAC said.
The global stock-to-use ratio is expected to increase to 1.00 for around 12 months of mill use and the global average yield in 2023-24 is currently expected to remain stable at 771 kg per hectare.
Given average cotton prices and weakening demand, slight decreases in planted area would be expected, but total planted area is projected to be 32.2 million hectares, a 2 percent hike over the previous season.
The current price forecast of the season-average A index for 2023-24 ranges from 72.33 cents to 104.12 cents, with a midpoint of 86.23 cents per pound.
