Cheng Sujing from CCFGroup delivered her report of Current status and outlook of the global cotton market

The report is mainly divided into two parts:

Domestic Market: In 2024, it is expected that the foreign demand will gradually recover. However, the Xinjiang cotton ban still exists, which poses a certain obstacle to the allocation of cotton orders. At the same time, it also promotes the consumption of Xinjiang cotton. Domestic sales market is relatively cautious this year, making it difficult to achieve the growth seen last year. There is a high probability of maintaining stability with fluctuations nearby. In terms of supply, although cotton production is expected to decrease significantly in the 2023/24 season, the imports does not make the overall supply and demand as tight. However, the entry of non-market flow resources such as into state reserves may cause structural tension, especially in the later part of the year. Intended planting area for the 2024/25 season is expected to slightly decrease, with close attention to weather changes in the later period. If the weather remains normal, the production may not necessarily decrease.

Foreign Market: The supply of US cotton and Indian cotton is relatively tight, while Brazilian and Australian cotton supply is relatively loose. If the expected increase in US cotton planting area is realized and there are no significant weather contradictions, the supply of US cotton may gradually shift from relatively tight to relatively loose. If there is sustainability in the restocking of the American market, the outlook is favorable in the international market consumption end.