#Raw Materials

2022-06-02

Cotton production and consumption invert as the season comes to a close

A-Index plotted against area / Note: The A-Index was lagged by one season. The season average was taken from August 1 to July 31 of the respective crop year.

Decreases in the crop size of some top cotton-producing countries — including India, Argentina and South Africa — have resulted in consumption outpacing production as the 2021/22 season comes to a close. They were closely aligned through most of the year but given these smaller-than-expected crops, consumption is expected to exceed production by about 265,000 tonnes.

Highlights from the June 2022 Cotton This Month include:

• With two months left in the 2021/22 season, cotton consumption has overtaken and exceeded production

• Global area for the 2022/23 season is estimated to decrease by 1% to 32.78 million hectares

• Global production for the 2022/23 season is projected to be 26.13 million tonnes

• Global consumption for the 2022/23 season is currently projected at 26.09 million tonnes

• Prices will be influenced by multiple, hard-to-predict events including governmental policies

As the 2021/22 season comes to a close:

• Global area is estimated to decrease by 1% to 32.78 million hectares

• Global production is projected to be 26.13 million tonnes

• Global consumption is currently projected at 26.09 million tonnes

To asses the impact of those figures on prices, the stocks-to-use ratio — which measures the available cotton stocks as a share of cotton mill use — can help quantify the relationship between cotton supply and demand. When supply is tight compared to demand, the ratio is lower. A lower stocks-to-use ratio could indicate higher prices. In contrast, when supply exceeds demand then the ratio increases putting downward pressure on cotton prices. Planted area also can have a major impact on prices, as shown in the graph below:

Given so many variables and unknowns, the Secretariat is temporarily suspending publication of the price projections. We will reevaluate the price situation in August and determine if we should resume price forecast projection modelling. High volatility and extenuating circumstances in global markets make it difficult for any modelling framework to produce accurate and useful information. Please note that this is only a temporary pause and as soon as we are confident in the model data we will release projections. From a historical perspective, the only other time the price model was suspended was during the 2010/11 season of unprecedented high price and volatility.

Cotton This Month is published at the beginning of the month with the Cotton Update published mid-month. The Cotton Update, which is included in the Cotton This Month subscription, is a mid-month report with updated information on supply/demand estimates and prices. The next Cotton Update will be released on 15 June 2022. The next Cotton This Month will be released on 1 July 2022.

New Cotton Review examines competitiveness, market risk, and opportunities

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ICAC’s 84th Plenary Meeting to be held March 24-26, 2027, in Alexandria, Egypt

Registration will soon be open for the International Cotton Advisory Committee’s 84th Plenary Meeting, to be held March 24-26, 2027, in Alexandria, Egypt. The local Organizing Committee in Egypt has chosen “Building a Resilient and Competitive Future for Cotton and Textiles” as the theme for the event, which will be held at the Rixos Montaza Alexandria Resort.

Global cotton production projected to outpace consumption, but risks remain

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Kraig Labs ships first commercial spider silk yarn

Kraig Biocraft Laboratories, Inc. (OTCQB: KBLB) (“the Company”, “Kraig Labs”, or “Kraig’s”), a world leader in spider silk technology*, today announced the shipment of its first commercial order of recombinant spider silk yarn. The custom-engineered yarn was produced to fulfill a purchase commitment from a globally recognized performance sports brand and is slated for development into a first-of-its-kind performance textile.

ALLIED expands down traceability with lot-level carbon footprint data

ALLIED Feather + Down has expanded its TrackMyDown traceability platform to include validated cradle-to-gate carbon footprint data linked to individual down lots. The initiative is designed to provide brands and consumers with more detailed environmental information on the materials used in finished products and could also support future data requirements associated with Digital Product Passports.

Cotton Brazil Dialogues 2026 concludes with 50 international participants immersed in Brazilian cotton production

The Cotton Brazil Dialogues concludes its 2026 edition after a series of technical visits to farms, cotton gins and reference centers, as well as workshops focused on Brazilian cotton production. A total of 50 participants from 14 countries took part in the field trips. The initiative is led by the Brazilian Association of Cotton Growers (Abrapa) and the National Association of Cotton Exporters (Anea), with support from the Brazilian Trade and Investment Promotion Agency (ApexBrasil).

Long John puts KARL MAYER's RDJ 7/3 into operation and strengthens its position as a market leader

KARL MAYER has just unveiled its new RDJ 7/3 Jacquard Double Needle Bar Raschel Machine in the international trade press, and the innovation is already causing a stir in the market: The Long John Group, a leading manufacturer of performance footwear fabrics and a long-standing partner of renowned brands, was the first customer to invest in the new machine and celebrated its official launch at its Indonesian plant on August 20.

An eco-friendly alternative to fluorocarbon treatments

Protective and outdoor clothing derives its durable water-, dirt- and oil- repellent properties from the application of fluorinated polymers or per- and polyfluorinated low-molecular- weight chemicals (PFCs). The beneficial properties thus achieved on textiles are offset by environmental and human health risks. For manufacturers of sports, medical, protective and automotive textiles, researchers at the Sächsisches Textilforschungsinstitut e.V. and the Leibniz Institute for Polymer Research have developed liquid-applied dispersions and solutions to functionalise textiles without the use of fluorine.

VDMA Textile Machinery with new Executive Board

At the general meeting of VDMA Textile Machinery held in Hanover at the end of September, Dr Janpeter Horn, Managing Director of A. Herzog Maschinenfabrik, was re-elected as Chairman of the trade association. Regina Brückner, managing partner of Brückner Trockentechnik, and Verena Thies, managing partner of Thies Textilmaschinen, will once again serve as vice-chairs for the next four years.