#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.

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ICAC announces postponement of the 83rd Plenary Meeting in Tanzania

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World Cotton Trade declined 4.1% in 2024/25, according to ICAC's 2025 World Cotton Trade Report

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38th International Cotton Conference Bremen: Let´s Talk about Cotton!

The 38th International Cotton Conference Bremen, to be held on 25-27 March 2026 in Bremen’s parliament building on market square, once again sends a powerful signal for professional excellence and international dialogue. The focus is on the latest market trends and technical innovations throughout the entire value chain – from agriculture and quality assurance to processing and the circular economy. With its high-calibre speakers, the conference remains an indispensable forum for anyone involved in shaping the cotton industry scientifically, technically, or economically.

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How innovations drive BASF’s success

“Innovation has always been part of BASF’s DNA. Especially in these volatile times, it is crucial to leverage our innovative strength to develop competitive solutions that differentiate us as a company in our markets and give us a competitive edge,” said Dr. Stephan Kothrade, Member of the Board of Executive Directors of BASF and Chief Technology Officer, at the company’s Research Press Briefing held today. To achieve this, BASF implemented its “Winning Ways” strategy about a year ago with the clear goal of becoming the preferred chemical company to enable its customers’ green transformation.

38th International Cotton Conference Bremen launches registration and unveils key topics

Participants can now register online for the 38th International Cotton Conference Bremen, which will be held on 25-27 March 2026 at the Haus der Bürgerschaft parliament building on market square. All visitors can look forward to a high-calibre conference programme, numerous additional meetings and a valuable exchange of knowledge and information. The comprehensive range of topics covering the entire value chain will provide practical expertise, address current developments, answer key industry questions, and provide new impetus for the future.

More safety and comfort for protective clothing thanks to auxetic fabrics

When everyday materials are pulled, they stretch or elongate in the direction of the pull and become narrower in cross-section. We can also observe this property in two-dimensional textiles. Auxetic structures behave differently here. They have the striking property of not changing under tensile stress or even increasing their width or thickness. These properties are advantageous, for example, in protective textiles or textile filter media. The DITF are researching auxetic fabrics for various applications.