The latest projections from the U.S. Department of Agriculture (USDA) for the cotton market in the 2023/24 season indicate a 6% rise in global cotton mill use, reaching 116.9 million bales, the highest since 2020/21.
Notably, Pakistan and India are expected to drive this growth, with gains of 1.4 million and 1.0 million bales, respectively. As mill use is set to outpace production, global cotton ending stocks are projected to decrease by 2.7% (2.5 million bales) to 91.6 million bales.
However, the global cotton market is facing some challenges that could dampen growth.
Challenges Remain
• Drought conditions in some major cotton-producing countries, such as China and India.
• Pests and diseases, such as the bollworm, which can damage cotton crops.
• Political instability in some cotton-producing countries, such as Uzbekistan.
The cotton market will need to closely monitor these developments to ensure that the growth in demand is met.
