As per latest US Department of Agriculture (USDA) report, spot cotton prices in the US reached their highest growth levels since June 14, 2018 to average 88.35 cents per pound for the week ended August 12, 2021. The weekly average increased from 86.31 cents the prior week and from 57.62 cents a year earlier. Most benchmark cotton prices increased last month, with the value for the December NY/ICE futures contract ranging between 88 cents and 90 cents per pound, according to the monthly update from Cotton Incorporated. In early August, futures eached levels over 93 cents per pound, Cotton Inc noted.

The A Index also breached $1.00 per pound for the first time since June 2018. The International Cotton Advisory Committee’s (ICAC) has increased the current price forecast of the season-average A index for 2021-22 ranges from 73 cents to $1.25, with a midpoint at 95.43 cents per pound.

USDA also increased its global trade forecast from 335,000 bales to 46.3 million bales. As per the Cotton Inc report, this would enable the association to record third-highest trade volume, only behind 2012-13 and 2020-21.

The Cotton Inc. report noted that the final set of weekly U.S. export sales and shipment data for the 2020-21 crop year just released by USDA was highlighted by the strength of U.S. export shipments over the past 12 months, even in the face of the global Covid-19 pandemic. Although shipments trailed off near the end of the crop year, total U.S. exports in 2020-21 rank as the second highest on record, only behind the 17.7 million bales shipped in 2005-06.