By Andi Anderson
The U.S. is expected to witness a significant boost in cotton production, reaching 16.0 million bales in 2024/25. This surge is fueled by an almost 8-percent increase in planted area and a notable 15-percent decline in the abandonment rate. Despite a forecasted continuation of relatively low domestic mill use, the lowest since 1884/85, exports are projected to rise to 13.8 million bales. This uptick aligns with the recovering U.S. production levels and its share of the global cotton trade.
Globally, cotton consumption is poised for growth after experiencing seasons of decline and slow expansion. The recovery in world textile supply chains, rebounding from recent shocks, contributes to this anticipated uptick. China's sustained high imports are foreseen, driven by steady global economic growth and a decline in China's own cotton production.
In the backdrop of these dynamics, the A-Index is forecasted to rebound modestly, showing an average of 97.5 cents per pound after two years of decline. The outlook for ending stocks and the stocks-to-use ratio is also optimistic, reflecting the overall positive trajectory of the cotton market in the upcoming year.
Categories: Illinois, Crops, Government & Policy