Cotton production is rising in all of the major nations growing the fiber, and the United States is leading the way with a 23-percent increase, says the International Cotton Advisory Committee. The large crop, forecast by ICAC as 10-percent larger than in 2016/17, will drive down the season-average price to 69 cents a pound, a drop of 14 cents.
As usual the U.S., the world’s largest cotton exporter, will take a 40-percent share of global trade, with 3.1 million tonnes of foreign sales. Bangladesh would lead the world in imports with 1.84 million tonnes.
This year’s large cotton crop will increase the global stockpile modestly. The inventory is equal to a nine-month supply. Cotton prices soared to an average 83 cents a pound during the 2016/17 trade year, making cotton an attractive choice compared to alternative crops and leading to this year’s large crop.