#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/

Organic cotton at the crossroads: Ideology, evidence, and the road ahead

Organic cotton occupies one of the most contentious spaces in global agriculture. While praised by brands and consumers for its environmental ideals, it also faces persistent questions about yield stability, certification integrity, and scalability. The current edition of The ICAC Recorder cuts through the ideology to deliver a rigorous, evidence-based assessment of both sides of the debate.

Dr N Vigneshwaran is named 2026 ICAC Researcher of the Year

The International Cotton Advisory Committee (ICAC) is pleased to announce the selection of Dr N Vigneshwaran, Principal Scientist and Head of the Chemical and Biochemical Processing Division at the ICAR–Central Institute for Research on Cotton Technology (ICAR-CIRCOT), Mumbai, India, as the ICAC Researcher of the Year 2026.

Cotton made in Africa partners receive top marks in independent verifications

Cotton made in Africa® (CmiA) and CmiA Organic are two internationally recognised standards that aim to promote sustainable development in the African cotton sector south of the Sahara. To ensure the standards’ credibility among brands, retailers, and consumers, independent verifiers evaluate compliance on the ground. The verification results for 2025, now published in the Aggregated Verification & Implementation Report, were very strong: The verifiers awarded consistently very good remarks regarding management, people, prosperity, and the environment.

Cotton ConneXions Insight to Impact brings supply chain leaders together around cotton innovation

Cotton Incorporated’s Cotton ConneXions Insight to Impact brought together more than 300 industry leaders from 140 companies across 10 countries, including more than 45 top global brands and sourcing organizations, underscoring strong global interest in cotton-rich product development, sourcing and supply chain collaboration.

Bremen Cotton Exchange: Fritz A. Grobien re-elected as President

The members of the Bremen Cotton Exchange have re-elected Fritz A. Grobien as President during the association’s 152nd General Assembly on June 18, 2026. The election confirms the organization’s commitment to maintaining its role as a leading international platform for the cotton and fiber industry amid a period of geopolitical and economic uncertainty.

Christian Wichert appointed Chief Executive Officer to lead next phase of growth

AMSilk GmbH (“AMSilk”), a global leader in advanced biomaterials made from silk proteins, today announces the appointment of Christian Wichert as its new Chief Executive Officer (CEO), effective 1 June. The appointment marks a pivotal moment in AMSilk’s journey, as the Company advances from development through scale-up to commercialization.

EDANA announces five new board members following 2026 Annual General Meeting

The EDANA Board of Governors is elected or re-elected at the Annual General Meeting by the member companies. The Governors are senior executives (business leaders) from member companies, based in different countries and representing different sectors of the nonwovens industry. The Board has central responsibility for guiding EDANA's overall strategy and approving its policies and priorities. It meets three times a year.

Bangladesh: Italian textile machinery mission stops in Dhaka and Chittagong

Technological upgrading and the transition toward higher value-added production are driving the new Italian industrial mission to Bangladesh. This year, the mission will split between the country’s two main manufacturing hubs, where Italian manufacturers will meet the leaders of the local textile supply chain in two strategic stages: July 7th in Dhaka and July 9th in Chittagong.