Global Cotton Trade To Grow 16% in 2023-2024
Global trade in raw cotton is expected to grow 16% year on year, to 43.8 million bales (1 bale = 480 pounds) in the 12 month period ending July 2024, as against the same period ending July 2023.
According to a latest US Department of Agriculture (USDA) report, this hike in cotton trade in 2023-2024 is the second highest in 11 years. USDA said record cotton trade of 48.9 million bales occurred in 2020/21.
The USDA added that leading cotton exporters will be the United States and Brazil, where projected exports account for 32% and 21% respectively of world cotton trade in 2023-2024. In the period under consideration, Indian cotton exports are also expected to rebound.
Rising world cotton trade is a result of increased mill demand expectations and leading global cotton importers are expected to be China, Bangladesh, and Vietnam.
Global mill use for 2023-24 is projected to rise 7% to 117 million bales, with consumption in all of the leading countries projected to increase.
World cotton production is forecast at 116.7 million bales in 2023-24, the highest in four years. As a result, 2023-24 global cotton stocks are projected slightly lower at 92.8 million bales, with China accounting for 41% of the world total cotton stocks.
USDA also expects cotton prices to decline in 2023-24 as against peaks of 2022-23
