The coming season looks like a promising one for cotton farmers, with high prices expected to continue through the 2021-22 season, says the International Cotton Advisory Committee. But prices are a double-edged sword. Higher income for farmers is a good thing and it could drive them to increase the global acreage under cotton but those costs are usually passed along the supply chain, which makes cotton less competitive against other fibers. 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. 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 tons.
Formed in 1939, the ICAC is an association of cotton producing, consuming and trading countries. It acts as a catalyst for change by helping member countries maintain a healthy world cotton economy, provides transparency to the world cotton market by serving as a clearinghouse for technical information on cotton production and serves as a forum for discussing cotton issues of international significance. In addition, members can take advantage of the ICAC’s global network of cotton researchers.