Market Outlook


Cotton and Wool Outlook: July 2021



India Leads 2021/22 Global Cotton Production

The latest U.S. Department of Agriculture (USDA) cotton projections for 2021/22 (August-July) indicate that global cotton production is forecast to increase 6 percent, largely the result of higher harvested area. World cotton production is projected at 119.4 million bales, with the top 4 producers contributing 73 percent of the total. India is expected to account for the largest share (24 percent) in 2021/22, with China contributing 22 percent. The United States and Brazil account for 15 percent and 11 percent, respectively.

World cotton mill use is projected at 123.2 million bales in 2021/22, nearly 4.6 million bales (4 percent) above 2020/21 and the third highest on record. However, despite rising mill use, 2021/22 global cotton trade is expected to decrease 4 percent from 2020/21’s record, as the United States accounts for one-third of total exports. With world cotton mill use above production, 2021/22 global ending stocks are forecast to decline for a second consecutive season. As a result, the world stocks-to-use ratio is projected at its lowest in 3 years and is expected to keep cotton prices above recent levels.



 See the Cotton and Wool Outlook.