US cotton exports have fallen from the previous year. Reasons include lower production and trade barriers. Shipments from the US to eight of the top 10 markets fell with China witnessing the largest decline. Indonesia and Thailand helped drag exports to Southeast Asia lower on declining use in both countries. Lower Indonesian yarn exports to China have helped contribute to declining imports.
However, US cotton exports to Vietnam continued another positive year of growth. Foreign direct investment in Vietnam by several East Asian countries boosted cotton imports and consumption to record levels in 2018-19, with further import growth expected in 2019-20. US cotton exports to India also witnessed significant growth in 2018-19 and surpassed the previous years by over two-thirds. South Asia was the only region which expanded imports, with India and Bangladesh driving the bulk of demand.
In 2019-20, US cotton exports are forecast to expand with a rebounding crop that’s estimated to grow by more than a quarter. With larger exports projected, the United States is expected to help meet greater global demand in 2019-20 with Vietnam imports (the top US market) expected to break the previous year’s record. US cotton exports to Vietnam have increased 294 per cent over the last five years.