Global cotton prices expected to remain high throughout 2021/22 – ICAC

Global cotton prices are expected to be volatile through the remainder of the 2021/22 season, but it is unlikely they will climb much higher than the current point, the International Cotton Advisory (ICAC) said in its latest monthly report.

“The ICAC Secretariat does not expect prices or volatility to reach those of the infamous 2010/11 season, when prices ascended all the way to 243.65 cents per pound,” the report said.

While mill use is expected to remain robust throughout 2021/22, global stocks are believed to be sufficient to meet the demand. At the end of the 2020/21 season, global stocks are estimated at 20.35 million tonnes, it added.

The Secretariat’s current price forecast of the season-average A index for 2021/22 ranges from 91 cents to 119 cents, with a midpoint at 103.29 cents per pound.

  • The international reference price of cotton has risen dramatically during the 2020/21 season and continues its rise into the 2021/22 season
  • Cotton prices are the highest they’ve been in a decade
  • However, the Secretariat does not expect cotton prices to rise much higher than they are now and it is highly unlikely that prices will reach the levels seen during the 2010/11 season

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