The report analyzes the global cotton supply and demand change first. In 2022/23 season, U.S. cotton production is forecast to reduce largely due to drought condition and Pakistani cotton production is also estimated to decrease with the heavy floods, while Indian and Chinese cotton production is likely to rise. For demand, the export growth rate in Southeast Asia was better than that in China in 2021/22 season. Looking from the data in the past few months, exports in India, Vietnam, Pakistan and Bangladesh show pressure gradually. Meanwhile, retail sales in overseas markets also reduce year on year, and wholesaler apparel inventory in U.S. is high.

Then Ms. Jia introduces the supply and demand situation in China. Cotton planting areas may rise by 1-3% in 2022/23, and production may increase by over 3%. Imports may decrease year on year. New cotton prices have not clear at present, and ginning factories and growers are still under competition for lower costs and higher returns respectively, and price is not expected to be higher than 16,000yuan/mt. Chinese cotton consumption has reduced largely in 2021/22 season, mainly caused by weak domestic demand, and in 2022/23, domestic demand may improve somewhat, while exports may face pressure.