For Immediate Release
Date Posted: 1 December 2021
Executive Summary
Highlights from the December 2021 Cotton This Month include:
- The international reference price of cotton has risen dramatically during the 2020/21 season and continues its rise into the 2021/22 season
- Cotton prices are the highest they've been in a decade
- However, the Secretariat does not expect cotton prices to rise much higher than they are now and it is highly unlikely that prices will reach the levels seen during the 2010/11 season
Cotton Prices Expected to Remain at Elevated Levels throughout 2021/22
Prices are expected to be volatile through the remainder of the 2021/22 season but it is unlikely they will climb much higher than the current the current point. The ICAC Secretariat does not expect prices or volatility to reach those of the infamous 2020/11 season, when prices ascended all the way to 243.65 cents per pound.
While mill use is expected to remain robust throughout 2021/22, global stocks are believed to be sufficient to meet the demand. At the end of the 2020/21 season, global stocks are estimated at 20.35 million tonnes.
The Secretariat's current price forecast of the season-average A index for 2021/22 ranges from 91 cents to 119 cents, with a midpoint at 103.29 cents per pound.
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Please contact the author, ICAC Data Scientist Matthew Looney, with questions on this report.
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About the International Cotton Advisory Committee (ICAC)
Formed in 1939, the ICAC is an association of cotton producing, consuming and trading countries. It acts as a catalyst for change by helping member countries maintain a healthy world cotton economy; provides transparency to the world cotton market by serving as a clearinghouse for technical information on cotton production; and serves as a forum for discussing cotton issues of international significance. In addition, members can take advantage of the ICAC's global network of cotton researchers, whose expertise covers the supply chain from farm to textile manufacturing, and have free access to its cutting-edge technologies like the voice-based app and virtual technology cotton training programme. Committed to ensuring cotton's continued sustainability, the ICAC is the only intergovernmental commodity body covering cotton that is recognised by the United Nations. For more information, please visit www.icac.org, Twitter or LinkedIn.
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Disclaimer
International Cotton Advisory Committee published this content on 01 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 December 2021 19:00:07 UTC.