#Raw Materials

2026-06-02

Global Cotton area and production are projected to decline in the 2026/27 Season

The June 2026 issue of Cotton This Month projects a modest contraction in global cotton area, production, and trade during the 2026/27 season, reflecting weaker demand sentiment, rising production costs, and shifting environmental factors across major producing nations.

According to the report, global cotton area is projected to decline by 1% to 30.1 million hectares, while world production is expected to decrease by 2% to 25.7 million tonnes. Global cotton trade is also forecast to fall by 1.4% to approximately 9.5 million tonnes.

Key Global Market Drivers:

Surging Input Costs: Global fertilizer prices rose by more than 12% in Q1 2026, driven by Middle East geopolitical tensions and export disruptions in the Strait of Hormuz.

Strategic Downsizing: Countries like China are intentionally excluding lower-efficiency, low-yielding, and water-stressed plots to favor more productive land.

Weather and Abandonment Pressures: While El Niño supports certain regions, 98% of the U.S. crop faces drought-like conditions, increasing abandonment risks. Meanwhile, Australia faces extreme dryness, and Pakistan struggles with erratic weather and pest pressures.

Alternative Crop Competition: High competition from crops like corn, alongside a soft global market and pressure from man-made fibers, is impacting cotton profitability.

Country Outlooks

China: Expected to remain the world’s largest cotton producer despite a projected 0.5% decline in area (to 3 million hectares) and a 4% decline in production to 7 million tonnes. Favorable weather conditions are expected to support strong crop performance, yielding a globally unmatched 2,421 kg/ha.

United States: Planted area is projected to decrease by 6% to 2.9 million hectares, pulling production down 4% to 2.8 million tonnes — the lowest level in three seasons. Despite a 98% drought footprint threatening abandonment rates, yields are projected 2% higher due to El Niño, and exports are forecast to rise 3%.

Brazil: Following four consecutive seasons of expansion, Brazil’s cotton area is projected to contract by 6% to 2 million hectares, leading to a 10% drop in production to 3.8 million tonnes. The reduction is primarily concentrated in Mato Grosso due to weak demand, rising fertilizer costs, and strong competition from corn.

India: India will maintain the world’s largest cotton area, holding steady at approximately 11.8 million hectares. Production is projected to expand by 8% due to normal monsoon forecasts. The additional output is expected to be absorbed by growing domestic consumption and strong yarn exports to China.

Australia: Driven by extreme dryness, reduced irrigation water, and high input costs, Australia’s cotton area and production are both projected to decline by 10%, bringing total production to approximately 937,000 tonnes.

Pakistan: Production is projected to decline by 18% to approximately 900,000 tonnes despite an unchanged cultivation area. Sector performance remains heavily constrained by poor seed quality, high pest pressure, and unpredictable weather patterns.

ICAC’s Price Projections

The Secretariat’s current Cotlook A price forecast for the 2025/26 season, based on current supply and demand estimates, ranges from 75 to 80 cents per pound, with a midpoint of 78 cents per pound. ICAC’s price projections are made by Ms Lorena Ruiz, ICAC Economist.

ICAC’s Statistical Data Portal

For the most current statistics, users are encouraged to consult ICAC’s Statistical Data Portal, which is updated continuously throughout the month to reflect live changes.

The author of Cotton This Month is Parkhi Vats, Principal Statistician & Data Architect at ICAC.

The next issue of Cotton This Month will be released on July 1, 2026.

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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.

China projected to increase cotton production, yields, and imports in 2026/27

World cotton production in the 2026/27 season is projected at 25.9 million tonnes, exceeding global consumption of 25.2 million tonnes, according to the May 2026 issue of Cotton This Month. That means both production and consumption are expected to remain close to current season levels, while global cotton trade is projected to decline by 2.7% to approximately 9.6-9.7 million tonnes.

New U.S. cotton study uses real-world grower data to reveal where fiber impacts occur

Cotton Incorporated has released a critically reviewed life cycle assessment (LCA) of U.S. cotton fiber production that examines how cotton’s environmental impacts are measured and where meaningful improvements can be made across the value chain. The new data, grounded in real‑world grower inputs, measures what drives U.S. cotton’s environmental footprint from field to gin.

ECCO introduces first shoe featuring innovative protein-based fibre

ECCO, in partnership with Spinnova, announces the launch of the limited edition ECCO BIOM® 720, a first-of-its-kind shoe utilising an often overlooked leather by-product, transformed into a protein-based fibre. The fibres are produced using patented technology that advances material innovation while reducing waste and supporting full resource use across the leather and textile industry.

KARL MAYER presents a textile TEXTRONIC® innovation at ITM 2026

With highly efficient machines and continuous textile innovations, KARL MAYER underscores its role as a reliable partner for discerning top-tier customers. Just in time for ITM 2026 in Istanbul, the industry leader is introducing a true innovation: an eyelash lace with its characteristic fringed look – combined with a previously unattainable 4-way stretch. While the established fabric could until now only be produced as rigid version or with one-dimensional stretch, the new elasticity in both dimensions expands the possibilities for cross-band panel fabrics.

DYNEEMA® and NP Aerospace advance personal protection for military servicewomen

Dyneema®, owned by Avient Corporation, an innovator of materials solutions, is supplying its high-performance unidirectional (UD) materials to world-leading armor manufacturer NP Aerospace, enabling the production of armor systems designed specifically to fit the female body. With 2,000 new armor systems, including 4,000 plates, made in the United Kingdom (UK) and delivered in June 2026, this collaboration addresses a long-standing lack of high-quality personal protection specially built for female defense and security personnel.

Textile Exchange publishes comprehensive polyester LCA study

Textile Exchange has released a new Life Cycle Assessment (LCA) study on polyester, providing detailed data on the environmental impacts of both virgin and recycled polyester production. The study aims to strengthen understanding across the fashion, textile and apparel industries and support more informed decision-making regarding polyester sourcing and production.