Cotton Price Trend and Forecast

Regional Price trend

Get the latest insights on price movement and trend analysis of Cotton in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Cotton Price Trend for Second Half of 2023

Global cotton prices hit a 12-month low by the end of the year 2023 due to a 3 percent rise in global production, reaching 25.41 million tonnes, while global consumption slightly decreased by 0.43 percent to 23.35 million tonnes. On the other hand, Brazil, Argentina, and Tanzania registered a significant improvement in their yield, while the United States, Australia, and Greece experienced a slight decline due to the ill consequences of adverse weather conditions.

Cotton Price Chart

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In India, cotton production for the third and fourth quarter season was forecasted to be the lowest in over 15 years, with an estimated output of 29.5 million bales. This fall in crop production was attributed to El Nino-induced dry spells in the majority of agriculture-dependent states. This reduction in production made the recovery of inventory stocks via imports much more crucial, and thus, the importation of 2.2 million cotton bales stood highest in three years.

The cotton acreage simultaneously fell to 12.4 million hectares from 13.1 million hectares in the season. North zone production estimates were initially at 6.3 million bales, highlighting the challenges faced by the Indian cotton industry and its potential impact on the global market. This limited production in the last two quarters of the year, along with the rise in consumer interest, led to a gradual inclination in the cotton price trend in India as well as the global markets.

Analyst Insight

According to Procurement Resource, the price trend of Cotton is estimated to rise further in the upcoming quarters as the soaring demand and dried-up inventories will widen the supply-demand gap.

Cotton Price Trend for the First Half of 2023

In the first and second quarters of 2023, the price trend of cotton in Asia-Pacific was driven by high demand in both domestic and international markets. The production of cotton in India was negatively impacted by adverse weather conditions and several other challenges that ultimately caused the level of inventories to deplete in the region, thus leading to a rise in its prices.

In addition to this, due to weak production rates, certain traders hoarded the cotton produce and, thus, further caused the rise in the cotton price trend. In the second quarter, the traders were forced to reduce their price quotations as, due to persistently high costs, the appetite of consumers was declining. Thus, to curb the reduction in demand, the prices of cotton declined. This reduction also supported the rates of export as many international markets increased their number of inquiries with a stabilization in cotton prices.

Analyst Insight

According to procurement resources, the price of Cotton is estimated to showcase an oscillating trend as the high demand and positive market outlook seem to be supporting the rise in the prices, while low production and extreme weather conditions will prove to be a challenge for the cotton price trend.

Procurement Resource provides latest prices of Cotton. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.