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Cotton Output From World’s Top Producer Projected to...

Business Maverick

Business Maverick

Cotton Output From World’s Top Producer Projected to Rebound

A worker gathers the remaining cotton from a module at a processing facility in Mayesville, South Carolina, U.S., on Wednesday, Oct. 13, 2021. Cotton's rally risks raising costs for apparel makers who may have to pass them on to consumers, at a time when food and energy prices are also climbing.
By Bloomberg
14 Feb 2022 0

Cotton supply from the world’s largest producer is poised for a rebound.


U.S. cotton plantings are expected to climb amid strong foreign demand, higher input costs for farmers and prolonged drought in Texas, the crop’s top growing state. The potential increase for the world’s largest cotton supplier comes just after cotton futures in New York touched a fresh decade high at the end of January. The fiber surged 44% last year, driven by projections for a second global deficit.

U.S. farmers are projected to sow 12 million acres for the season beginning Aug. 1, up about 7.3% from the previous year, according to the National Cotton Council’s planting-intentions survey released Sunday.

The possibility of more American cotton comes at a time when supplies are tighter and global demand for textiles is sky-high, propelled by a voracious appetite for the fiber from China, India and Mexico. Global cotton consumption is expected to rise 2.8% this year, according to data from the United States Department of Agriculture.


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