#Raw Materials

2022-09-01

Flooding and drought are having a crushing impact on the global cotton industry

The massive human suffering in Pakistan is painful to witness, with more than 33 million people affected and nearly 1,200 killed to date. The entire global cotton industry is keeping the country and its people in their thoughts and prayers.

Executive Summary

Highlights from the September 2022 Cotton This Month include:

The impacts of climate change are being felt in multiple major cotton-producing countries

Floods have been devastating in Pakistan, with nearly 1,200 people killed to date

More than 33 million people have been affected and the economic costs are approaching $10 billion

On the other side of the world, the West Texas crop has been gravely damaged by drought, with an estimated loss of 1 million tonnes compared to last year

Globally, we will see continued volatility and potentially higher prices throughout the entire 2022/23 season

The impact on the cotton crop will not be fully realised until the water subsides but sources on the ground are reporting a large reduction in the expected crop for the 2022/23 season. The ICAC is reducing the estimated production for Pakistan from 1.5 million tonnes to 1 million tonnes. Below is the current snapshot of the Pakistan balance sheet.

In the United States, the effects on the cotton crop in Texas have been devastating and currently amount to an estimated loss of over 1 million tonnes compared with the previous season. This puts the current US crop at just over 2.7 million tonnes. And while the West Texas region has received a good amount of rain in the past few weeks, the precipitation has come much too late to help the dry land cotton — and if bolls are open in irrigated fields, it could spell trouble for quality.

Price Projections*

The Secretariat’s current price forecast of the season-average A index for 2022/23 ranges from 99 cents to 157 cents, with a midpoint at 126.95 cents per pound.

* The price projection for 2022/23 is based on the ending stocks-to-mill use ratio in the world-less-China in 2020/21 (estimate), in 2021/22 (estimate) and in 2022/23 (projection), on the ratio of Chinese net imports to world imports in 2021/22 (estimate) and 2022/23 (projection), and the average price in 2021/22. The projection reflects a 95% confidence interval.

Cotton This Month is published at the beginning of the month with the Cotton Update published mid-month. The Cotton Update, which is included in the Cotton This Month subscription, is a mid-month report with updated information on supply/demand estimates and prices. The next Cotton Update will be released on 15 September 2022. The next Cotton This Month will be released on 3 October 2022.

Global cotton consumption to exceed production in 2026/27 as Asian demand remains resilient

Global cotton consumption is projected to exceed production in the 2026/27 season as output declines across several major producing countries while demand remains relatively stable, according to the November edition of Cotton This Month, published by the International Cotton Advisory Committee (ICAC).

ICAC announces 84th Plenary Meeting in Egypt with focus on cotton industry resilience

Registration is now open for the International Cotton Advisory Committee’s 84th Plenary Meeting, which will take place from 24 to 26 March 2027 in Alexandria, Egypt. The conference will address climate resilience, technological developments, sustainability and competitiveness across the global cotton and textile value chain.

New Cotton Review examines competitiveness, market risk, and opportunities

From moving record volumes of Brazilian cotton to market, to managing price volatility, unlocking Ethiopia’s production potential, and strengthening African textile trade, the latest edition of Cotton: Review of the World Situation examines some of the most consequential opportunities and challenges facing the global cotton industry.

Kraig Labs ships first commercial spider silk yarn

Kraig Biocraft Laboratories, Inc. (OTCQB: KBLB) (“the Company”, “Kraig Labs”, or “Kraig’s”), a world leader in spider silk technology*, today announced the shipment of its first commercial order of recombinant spider silk yarn. The custom-engineered yarn was produced to fulfill a purchase commitment from a globally recognized performance sports brand and is slated for development into a first-of-its-kind performance textile.

ALLIED expands down traceability with lot-level carbon footprint data

ALLIED Feather + Down has expanded its TrackMyDown traceability platform to include validated cradle-to-gate carbon footprint data linked to individual down lots. The initiative is designed to provide brands and consumers with more detailed environmental information on the materials used in finished products and could also support future data requirements associated with Digital Product Passports.

ICAC’s 84th Plenary Meeting to be held March 24-26, 2027, in Alexandria, Egypt

Registration will soon be open for the International Cotton Advisory Committee’s 84th Plenary Meeting, to be held March 24-26, 2027, in Alexandria, Egypt. The local Organizing Committee in Egypt has chosen “Building a Resilient and Competitive Future for Cotton and Textiles” as the theme for the event, which will be held at the Rixos Montaza Alexandria Resort.

Lenzing improves profitability as strategic transformation gains momentum

The Lenzing Group reported improved operating profitability in the first nine months of 2026 despite declining revenue and a challenging market environment. Revenue decreased by 2.3 percent to EUR 1.93 billion, while adjusted EBITDA remained stable at EUR 353 million. The adjusted EBITDA margin increased from 17.9 percent to 18.3 percent, reflecting progress in the company's strategic transformation under its “Grow Nonwovens. Reset Textiles.” strategy.

Texworld Apparel Sourcing Paris marks 30th anniversary with a redesigned exhibition concept

Texworld Apparel Sourcing Paris will celebrate its 30th anniversary from 25 to 27 January 2027 at the Paris-Le-Bourget Exhibition Centre. With more than 1,000 international exhibitors expected, the anniversary edition will introduce a redesigned exhibition layout across Halls 3 and 4, bringing fabric manufacturers and garment producers closer together. The event will also highlight Spring-Summer 2028 trends, sustainable sourcing and new opportunities for international textile trade.