Global cotton consumption seen at record high in 2019/20 – ICAC

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While the global cotton industry continues to face a number of challenges — trade uncertainties, slowing economic growth and weakening demand — consumption is still expected to set an all-time high in 2019/20, reaching 27.3 million tonnes, the International Cotton Advisory Committee (ICAC) said.

However, that record-breaking number still won’t be enough to keep global ending stocks from rising by the end of the 2019/20, the ICAC said in its latest monthly report.

“Total production is projected to reach 27.6 million tonnes, a number boosted in part by a 6% increase in global yields, which should leave 17.7 million tonnes in the world’s warehouses at the end of next season,” the report said.
 
According to ICAC’s price projection, changes in market fundamentals — particularly the stocks-to-mill-use (SMU) ratio outside of China — will drive a decrease in the A Index, which is now expected to drop to 81.25 cents per pound in 2019/20.

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