#Raw Materials

2024-03-07

Higher cotton prices are being driven by speculation, not fundamentals

The latest Cotton This Month report has unveiled a significant surge in the price of cotton, transcending initial market projections. This unexpected increase can be attributed primarily to a wave of speculative buying on the futures market.

The actions of speculative buyers have significantly increased the demand for futures contracts, ultimately exerting an upward force on cotton prices. A common pattern emerges as speculators invariably attract additional participation in the market, creating a feedback loop that escalates buying pressure and, consequently, prices.

The real story will start to unfold in the next few months when planting intentions are solidified (at least in the Northern Hemisphere). Planting intentions have been lower than in previous years, and it remains to be seen whether the recent higher prices will incentivize farmers to increase the area under cotton.

If the planted area remains below previous seasons' levels, and consumer sentiment improves — thus driving demand up in the 2024/25 season — then we can certainly expect higher prices to materialize and be justified by fundamentals, especially given the lower stocks in many of the largest countries.

Price Projections

The Secretariat’s current price forecast of the season-average A-index for 2023/24 ranges from 83.5 cents to 102.3 cents, with a midpoint of 91.73 cents per pound.

For the most up-to-date statistics, please refer to the Data Dashboard. It is updated with new data constantly, and that new information is immediately reflected on the Dashboard, making it a valuable, up-to-date resource all month long. You can view a video tutorial on how to use the ICAC Data Dashboard on the ICAC’s YouTube page.

Please note that the cotton balance sheets have been moved to the ICAC Data Dashboard. This ensures that the season balance sheets are always up-to-date and available whenever you need them. This also helps to reduce errors because the data is compiled directly from our database. They are included in this PDF report, but we strongly encourage users to obtain all data from the Dashboard.

Dashboard

https://icac.shinyapps.io/ICAC_Open_Data_Dashboaard/

Global cotton consumption to exceed production in 2026/27 as Asian demand remains resilient

Global cotton consumption is projected to exceed production in the 2026/27 season as output declines across several major producing countries while demand remains relatively stable, according to the November edition of Cotton This Month, published by the International Cotton Advisory Committee (ICAC).

ICAC announces 84th Plenary Meeting in Egypt with focus on cotton industry resilience

Registration is now open for the International Cotton Advisory Committee’s 84th Plenary Meeting, which will take place from 24 to 26 March 2027 in Alexandria, Egypt. The conference will address climate resilience, technological developments, sustainability and competitiveness across the global cotton and textile value chain.

New Cotton Review examines competitiveness, market risk, and opportunities

From moving record volumes of Brazilian cotton to market, to managing price volatility, unlocking Ethiopia’s production potential, and strengthening African textile trade, the latest edition of Cotton: Review of the World Situation examines some of the most consequential opportunities and challenges facing the global cotton industry.

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.

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.

Trützschler brings intelligent fiber processing and automation to India ITME 2026

From December 4 to 9, 2026, the Trützschler Group will present its latest innovations in spinning, card clothing and nonwovens at India ITME in Greater Noida, India. At Hall 11, Booth B15, visitors can discover solutions designed to increase productivity, reduce operating costs and ensure consistently high product quality. Key highlights include the intelligent card TC 26i, the 12-head comber TCO 21XL, innovative card clothing solutions for improved fiber utilization and quality, as well as advanced nonwovens technologies for hygiene, wipes and technical applications.

Circulose resumes recycling of discarded cotton textiles and appoints interim CEO

Circulose today announced its restart of commercial-scale production plant at Ortviken in Sundsvall, Sweden, marking a significant step in scaling next-generation materials for the global fashion industry. The Ortviken plant is the world’s first commercial-scale chemical textile recycling facility. Its restart demonstrates that the fashion industry is seeking ways to scale proven solutions that move beyond pilots and into commercial production.

Itema brings textile versatility to ITMA ASIA + CITME 2026

Itema announces its participation in ITMA ASIA + CITME 2026, taking place November 20–24 at the National Exhibition and Convention Center in Shanghai. In Hall 3 – Stand D06, the company will showcase two Galileo-RX rapier weaving machines weaving heavy denim and conveyor belt fabrics, demonstrating its ability to address different textile requirements with application-specific configurations. Five additional Itema machines at partner booths will extend the exhibition lineup to upper shoe fabric, label, Jacquard leno fabrics, and shirting, offering visitors a broader view of Itema rapier and air-jet weaving technologies.