#Raw Materials

2022-10-06

The 2022/23 Cotton Season Faces the Triple Threat: Low Production, Declining Consumption and Market Volatility

A few months ago, the ICAC warned that people needed to buckle themselves in for what was shaping up to be a bumpy ride in the 2022/23 season – but even we didn’t expect this situation. Due to catastrophic flooding, Pakistan is expected to see its production decline by 21% from last season. And that number could grow as reports of the damage come in.

Meanwhile, US growers faced the opposite type of adverse weather, drought, and it has completely erased the West Texas crop. The effects of Hurricane Ian also have caused damage to the crop in Georgia, the second-largest cotton producing state in the country.

Even if production were unaffected by these disasters, the uncertainty about the strength of the global economy has prompted investors to anticipate a decline in consumption. A decrease in production would normally be expected to drive prices higher, but when combined with bearish macroeconomic concerns, the expectation is difficult-to-predict volatility.

With all of this grim news, we want to end on a positive note: revitalised production in West Africa. If the projected numbers come to fruition, the region will achieve its highest production ever. If nothing else, it could serve as the one bright star in what is shaping up to be a dark 2022/23 season.

Price Projections[1]

The Secretariat’s current price forecast of the season-average A index for 2022/23 ranges from xx cents to xxx cents, with a midpoint at xxx.xx cents per pound.

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[1] The price projection for 2022/23 is based on the ending stocks-to-mill use ratio in the world-less-China in 2020/21 (estimate), in 2021/22 (estimate) and in 2022/23 (projection), on the ratio of Chinese net imports to world imports in 2021/22 (estimate) and 2022/23 (projection), and the average price in 2021/22. The projection reflects a 95% confidence interval.

Cotton This Month is published at the beginning of the month with the Cotton Update published mid-month. The cotton Update is a mid-month report with updated information on supply/demand estimates and prices. The next Cotton Update will be released on 15 October 2022. The next Cotton This Month will be released on 1 November 2022.

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.

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.