A report titled, ‘Cotton: World Markets and Trade’ by the US Department of Agriculture (USDA) estimates, global cotton production will rise marginally to 113.5 million bales in 2023-24. The report attributes this increase primarily to higher yields in Afghanistan, Argentina, US and Paraguay. In fact, Argentina recorded the highest yield in 10 years while Afghanistan achieved record-level production.

Contrary to this, global cotton consumption is expected to have decreased by 500,000 bales to 115.3 million bales. Lower usage in key cotton markets including the US, Turkey and Vietnam caused this consumption decline. However, this drop

did not affect the global cotton trade which is expected to remain stable at 43.3 million bales. However, this stability resulted from China’s increased imports balancing out imports by Vietnam and Turkey. 

Global cotton end stocks have increased by 1.6 million bales to 81.5 million bales on account of China’s increased government spending, increase in US production and declining exports from India. The season-average farm price for the 2023-24 crop in the US is expected to decline slightly by 3 cents, settling at 77 cents per pound.