Cotton and Wool Outlook: November 2020
Global 2020/21 Cotton Trade Largest in 8 Years
The latest U.S. Department of Agriculture (USDA) estimates indicate that world cotton trade in 2020/21 is projected at 42.9 million bales—approximately 4.5 percent above 2019/20 and the highest since 2012/13. The United States and Brazil are the primary cotton exporters in 2020/21, while China, Bangladesh, and Vietnam are the leading importers.
The higher world cotton trade supports the projected mill use increase this season as the health of the global economy recovers from unprecedented shocks. World cotton mill use in 2020/21 is estimated at 114.1 million bales, nearly 12 percent above 2019/20 but below each of the preceding 3 years. Meanwhile, the lowest harvested area in 4 years has reduced the 2020/21 global cotton production forecast 5 percent below 2019/20 to 116.1 million bales. Despite this decline, world cotton production remains above mill use, resulting in rising 2020/21 ending stocks to the second highest on record at 101.4 million bales. However, the 2020/21 global stocks-to-use ratio is projected to decrease and support modestly higher world cotton prices.
See the Cotton and Wool Outlook.