Cotton Market Faces Downturn as Production Drops in the U.S., Pakistan, and Sudan

The cotton market fell short of its global production estimates in August. As reported by the International Cotton Advisory Committee (ICAC) in a statement, production has fallen from 25.9 million tons to 25.5 million tons, and the agency warns of “changes in trade patterns and demand”.

This decrease in production is mainly linked to three countries. First, the United States, which produced 400,000 tons less. Pakistan, with 100,000 tons less, and Sudan, with 50,000 tons less, had a less significant role in the drop in production.

The committee argues that water shortages and “unusually dry” weather have hit U.S. and Pakistani production, while pests have damaged Sudan’s crops. However, the Ccia says both consumption and trade figures have remained “virtually unchanged” since last month.

The United States produced 400,000 tons less; Pakistan, 100,000 tons less; and, Sudan, 50,000 tons less.

China accounted for 40% of U.S. cotton exports in 2023-2024, a figure that has been reduced to 8% in the light of the trade war between the two powers.

Vietnam, Pakistan, Turkey and India share China’s pie. According to estimates for this year, Vietnam accounts for 22% of exports to the United States (up 11% from the previous year), Pakistan 19% (up 8%), Turkey 12% (up 5%) and India 5%.

In fact, according to the report, the committee expects both India and Bangladesh to be the two countries with the highest growth potential in terms of exports to the United States. Imports of Indian cotton fiber have increased threefold compared to last year.