Although world cotton production is forecast to be the highest in six years, there are “some concerning dark clouds on the horizon” as the 2023/24 season begins, said the International Cotton Advisory Committee. Inflation could discourage consumers from purchasing discretionary goods, and three of the world’s largest growers, China, India, and the United States, may have smaller harvests than initially expected, said the association of members of cotton producing, consuming, and trading nations.
“The ICAC’s current projections for production, consumption, and trade all reflect improvements over the prior season,” said a monthly summary by the group. The cotton trade year begins each Aug. 1.
Global cotton production was forecast at 26.5 million tonnes, a 7 percent increase from the 2022/23 season, which ended on July 31, and the largest since 27 million tonnes in 2017/18. Exports and consumption also were projected to increase by healthy amounts. But 22.3 million tonnes of cotton would be in warehouses at the end of the 2023/24 trade year, an increase of 2.1 million tonnes from the inventory at the start of the year and equal to nearly an 11-month supply.