International Cotton Advisory Committee (ICAC) has revised the 2020/21 cotton consumption forecast upward this month from 24.2 million tonne to 24.5 million tonne. While the projected 7 per cent year-over-year increase isn’t nearly enough to offset the losses caused by the pandemic, it’s expected to outpace production, thus drawing stocks down by the end of the season. Stock levels are expected to drop to 21.1 million tonne by the end of 2020/21, which would represent a 1 per cent decrease from the previous season.

The Secretariat is projecting an increase in global trade. Both China and Pakistan are forecast to increase imports, the former benefitting from the price gap between domestic and foreign cotton and the latter due to a decrease in domestic production. This month, the Secretariat’s price projection for the year-end 2020/21 average of the A Index is 75.7 cents per pound.