After a long and painful struggle, global cotton logistics is finally recovering from the pandemic-induced slowdown. As per the April 2022 edition of ‘Cotton This Month’ published by the International Cotton Advisory Committee (ICAC), cotton consumption across the world is expected to remain robust at 26.16 million tons by the end of the 2021/22 season.

Global demand to outstep supply

Production meanwhile is likely to decline slightly to 26.43 million tons. However, it will remain sufficient to accommodate consumption. Global cotton supply of 57.129 million tons is likely to fall short of global demand of 57.133 million tonne. The Secretariat forecasts, current cotton price of the season-average A index for 2021-22 will range between 106 cent and126 cents, with prices stabilizing at 113 cents per pound.

Harbinger of change

Currently the US is in a much better position to effect changes in the global cotton industry. Being the world's largest exporter, the country can serve as an indicator of potential dangers in worldwide cotton shipping and logistics.

Forum for discussion

An association of members of cotton producing, consuming and trading countries, ICAC was formed in 1939, and the secretariat was established in 1946. The secretariat has 10 members originating from seven countries, primarily working from one office in Washington, DC. Its documents are published in English, French and Spanish, monthly summaries are available in Russian, and annual summaries are available in both Arabic and Russian. The association aims to serve the cotton and textile community through promotion, knowledge sharing, innovation, partnerships and providing a forum for discussion of cotton issues of international significance.

ICAC publishes ‘Cotton This Month’ at the beginning of every month with Cotton Update published mid-month. The report provides updated information on supply/demand estimates and prices in the cotton industry.