ICAC: Cotton Prices Are Expected To Remain High In 2021 / 22

 

*In 2020 / 21, the international reference price of cotton will rise sharply and will continue to rise to 2021 / 22

 

*Cotton prices are at a decade high

 

*However, cotton is not expected to rise much higher than it is now, and it is highly unlikely that it will reach the 2010 / 11 level

 

Cotton prices are expected to remain high in 2021 / 22

 

For cotton farmers, the coming year seems hopeful, with high prices expected to continue into 2021 / 22. This is obviously a good thing, but the price is a double-edged sword. Farmers' high incomes are a good thing, which may push them to increase the global cotton acreage, and these costs are usually passed through the supply chain, thereby reducing the competitiveness of cotton with other fibers.

 

Prices are expected to fluctuate for the rest of 2021 / 22, but are unlikely to climb much higher than they are now. ICAC does not expect prices or volatility to reach 2020 / 11 levels, when prices soared to 243.65 cents a pound.

 

Although plant usage is expected to remain strong in 2021 / 22, global inventories are expected to be sufficient to meet demand. At the end of 2020 / 21, global inventories are estimated at 20.35 million tons.

 

ICAC currently forecasts the average price of cotton in 2021 / 22 in the range of 91-119 cents, with a median of 103.29 cents per pound.