#Raw Materials

2022-07-07

A rare period of stability in an up-and-down season

The ending cotton season has been a lot of things, but stable and consistent aren’t really among them. However, production and consumption in the final month of the 2021/22 season are virtually unchanged from the numbers in June.

Australia’s forecast has been revised upward slightly, adding 119,000 tonnes to the 2021/22 season and 41,000 tonnes for 2022/23. Consumption remains unchanged at 26.15 million tonnes, which still surpasses the expected production of 25.91 million tonnes despite Australia’s larger contribution.

However, don’t let the seeming stability fool you about what’s coming. The drastic increase in fuel and energy costs have had a direct impact on fertiliser prices and availability.

Worse, there are growing concerns that the world will experience multiple famines as a result of the conflict in Eastern Europe, which spells trouble for everyone but especially African nations. During the 2007-08 hunger crisis, the ICAC observed reductions in area under cotton and a decrease in production in Africa, especially the C4(+2) (Benin, Burkina Faso, Chad, Mali, Cote d’Ivoire and Senegal). The effects from those reductions persisted through the 2011/12 season.

There is some good news, however: Africa has made gains in developing The African Continental Free Trade Area (AfCFTA), which went into effect on 30 May 2019, and the agreement has the potential to facilitate the movement of commodities across borders with the elimination of tariffs on most goods and services. The ICAC has been actively engaged in education and training efforts in several African countries, including the concept of regenerative agriculture. Those projects are longer-term but add significantly to the African cotton industry’s outlook in the coming years.

Given so many variables and unknowns, the Secretariat is temporarily suspending publication of 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 July 2022. The next Cotton This Month will be released on 1 August 2022.

Highlights from the July 2022 Cotton This Month include:

With little movement in the numbers from last month, global consumption (26.15 million tonnes) is still expected to exceed production (25.91 million tonnes)

Things are not expected to remain stable for long, with issues from the pandemic and conflict in Eastern Europe still impacting the market

The cotton industry — and entire planet — will face much worse consequences if the looming global food crisis comes to pass

As has traditionally been the case, African nations will be hit the hardest by a food shortage

ICAC to support European Commission on pending PEF legislation

The International Cotton Advisory Committee (ICAC) is proud to announce that it has been included as a member of the European Commission’s Technical Advisory Board (TAB) on the Product Environmental Footprint methodology. The Commission developed the Product Environmental Footprint (PEF) to assess and communicate the life cycle environmental performance of products and organizations.

Lenzing commissions 14 MW power‑to‑heat facility, strengthening grid stability and heat management

The Lenzing Group has successfully commissioned a new power‑to‑heat (P2H) facility with an electrical capacity of 14 megawatts. The installation converts renewable electricity directly into process heat, is fully integrated into the existing heat network at the industrial site, and represents a key building block for a fossil‑free heat supply. As project partner, VERBUND was responsible for the energy‑market integration and will operate the facility for balancing energy marketing, enabling it to respond flexibly to short‑term fluctuations in the power grid.

Kraig Biocraft reaches next step in production growth

Kraig Biocraft Laboratories, Inc. (OTCQB: KBLB) (“the Company”, “Kraig Labs”, or “Kraig’s”), a world leader in spider silk technology*, today announced that it has produced more than 1.3 metric tons of recombinant spider silk cocoons in a single month. This is a new world record and shatters the Company’s previous production record by a factor of five. Today marks a pivotal step forward in the transition of spider silk from laboratory innovation to an industrial-scale material platform.

New study shows low environmental impact by Cotton made in Africa Organic Cotton from Tanzania

Today, the Aid by Trade Foundation (AbTF) is announcing the results of a comprehensive life-cycle analysis (LCA) for cotton produced in Tanzania under the Cotton made in Africa Organic (CmiA Organic) standard. The study emphasises the small ecological footprint of CmiA Organic verified cotton. This can largely be traced back to the absence of synthetic pesticides, artificial fertilisers, and artificial irrigation. Consequently, CmiA Organic cotton can help the textile industry meet regulatory requirements as well as science-based targets. The results also show that the consequences of climate change threaten the livelihoods of these cotton farmers, even though the type of agriculture they practise barely contributes to climate change.

Closing completed – Mayer & Cie. Global starts business operations

The future of the Mayer & Cie. brand has been secured: Following the successful completion of the purchase agreement for assets in the circular knitting machinery segment of the German traditional company Mayer & Cie., which was signed in February this year, the brand will continue to exist. The transfer of these assets to the new owner, Xu Hongjie, was formally completed yesterday afternoon. This clears the way for the resumption of business operations at the Albstadt site.

Techtextil 2026 recognition for the UK’s FET

Fibre Extrusion Technology (FET) will receive the Techtextil 2026 New Production Technology Innovation Award at next week’s Techtextil in Frankfurt (April 21-24). The Leeds-based member of the British Textile Machinery Association (BTMA) has developed the FET-500, a new toxic solvent-free gel small scale system for the production of ultra-high-molecular-weight polyethylene (UHMWPE).

Lower CO2, stronger bonds: Indorama Ventures enables customers’ performance at Techtextil

At Techtextil 2026 in Frankfurt am Main, Indorama Ventures presents its latest material innovations aimed at supporting customers in achieving both performance and sustainability targets. The company highlights solutions based on recycled and bio-based raw materials as well as advanced binder fibers, addressing current market demands for lower CO₂ emissions, improved efficiency, and reliable supply.