As per the April 2021 edition of Cotton This Month, the cotton sector is expected to recover with mill use of cotton increasing by 8 per cent in the 2020-21 and vaccines slowly making their way around the globe. However, as per IOAC report, vaccine deployment varies widely from one region to other, with many countries providing no vaccinations at all. In addition, a shift in consumer spending on services is likely to reduce demand for durable goods.
Furthermore, while estimates for global consumption have increased, the estimates for production have declined. This is leading to a decline in stock level proving future support for prices. Finally, no progress has been made since the Phase One trade agreement between the US and China went into effect last year with tensions also between China and Australia.