Cotton production in the 2021/22 season is currently projected to rise to 26.11 million tonne and consumption is likely to remain steady at 25.67 milliontonne, as per the March 2022edition of Cotton This Month published by the International Cotton Advisory Committee.

The cotton industry today is struggling to supply the fibre to the spinners as the COVID pandemic has disrupted global shipping across many industries. But the cotton supply chain is longer and more complex than it is for most other commodities, especially since so much of the production in the West has to be shipped halfway around the world to the countries where it's transformed into textiles.

Those challenges are forcing countries to adapt by streamlining their supply chains. China, Vietnam and Pakistan imported large amounts of cotton from the United States in 2020/21.

Given Australia’s geographic proximity to East and South Asia, this provides a distinct advantage to Australia when shipping ocean freight to Bangladesh, Pakistan and Vietnam. Australia is clearly capitalising on their increased production capacity and impressive yields, especially in the 2021/22 season.

The Secretariat’s current price forecast of the season-average A index for 2021/22 ranges from 101 cents to 120 cents, with a midpoint at 109 cents per pound.