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Cotton prices will remain high in 2021/22
The international cotton reference price rose sharply in 2020/21 and continued to increase in 2021/22. The cotton price is at the highest level in ten years. The International Cotton Advisory Committee (ICAC) recently stated that cotton farmers are optimistic about the next phase of prices, and it is expected that cotton prices will remain high-end by 2021/22. However, ICAC pointed out that price is a double-edged sword. The increase in farmers’ income may prompt them to increase the global cotton acreage, but the increased price Lattice costs are usually passed on through the supply chain, making cotton less competitive with other fibers. In the remainder of 2021/22, cotton prices are still expected to fluctuate, but they should not be much higher than the current level. The ICAC Secretariat stated that the cotton price rose to 243.65 US cents/lb in 2010/11, but it is expected that the price of the new phase or its fluctuation range will not be so. The utilization rate of the factory in 2021/22 will remain strong, and the global inventory is sufficient to meet demand. At the end of 2020/21, global stocks are estimated at 20.35 million tons. The Secretariat currently predicts that the average A-index price in 2021/22 will be between 91 and 119 US cents/lb, with a median of 103.29 US cents/lb. In November 2021, ICAC stated that compared with 2020/21, global cotton production is expected to grow by 6%, among which 3 of the world's top 5 cotton producing countries: the United States, Brazil, and Pakistan have the largest increase. The agency recently announced that it has partnered with the International Trade Centre to double the output of at least 50,000 small-scale cotton farmers in Zambia by January 2024.