The International Cotton Advisory Council (ICAC) expects world cotton stocks to decline to eighteen million tonnes in 2019-2020.
The cotton, on alert. The International Cotton Advisory Council (ICAC) expects world cotton stocks to decrease by 1% during the current exercise, reaching eighteen million tonnes.
The overall reduction is mainly due to the reduction of China's stock, which will fall 5.5%, to 8.4 million tonnes. The organization expects cotton stocks to increase 3% in the rest of the world, up to 9.6 million tonnes.
Cotton production, on the other hand, will increase by 1% during the exercise. The ICAC expects India’s crop to grow 12%, up to six million tonnes more. In parallel, the United States will continue to be the largest export of this raw material, registering an increase of 9%, up to 4.4 million tonnes.
The current crisis has led ICAC to review cotton prices
The organization explained that the coronavirus outbreak adds more uncertainty to the current market situation, which is already threatened by trade tensions between China and the United States.
This crisis, combined with the economic slowdown worldwide, has led ICAC to review its current projection of cotton prices, which are at 79 cents per pound.