The global stock-to-use ratio is expected to increase to 1.00 (approximately 12 months of mill use) in 2023/24, and the global average yield is currently expected to remain stable at 771 kg per hectare.
Given average cotton prices and weakening demand, slight decreases in planted area would be expected. However, total planted area is projected to be 32.2 million hectares, a perplexing 2% increase over the previous season.
Price Projections:
The Secretariat's current price forecast of the season-average A index for 2023/24 ranges from 72.33 cents to 104.12 cents, with a midpoint of 86.23 cents per pound.
