Increase in global cotton consumption concerns internal market
Global cotton consumption tends to increase for the third consecutive year against the backdrop of economic recovery. According to the USDA Agricultural Outlook Forum, demand will be higher than the production of the 2022/23 harvest, reducing global stock by raising the global E/C ratio to 64%. The global production forecast is currently estimated at 27 million tons, 3% higher than the previous harvest.
In the United States, the total amount foreseen for the production of the 2022/23 harvest is 3.83 million tons, a number 21% higher than that registered in the previous harvest, despite having the smallest planted area in the last 5 years due to the increase in grain prices such as soy, corn and wheat.
In Brazil, this scenario raises concerns about the capacity of the market and the domestic industry to absorb high prices.
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