Positive Sentiment In The Local Cotton Industry

High maize stocks, which have put pressure on the maize price, combined with higher demand for cotton, particularly from China, have contributed to a favourable outlook for cotton production in South Africa.

- Conce Moraba

International cotton prices, supported by sustained, growing consumer demand, have been positive in 2018. Increased consumption has resulted in lower ending stocks globally, and world prices reached a seasonal average of approximately R23/ kg from August 2017 to May 2018.

Global cotton production was estimated at 26,6 million tons for the 2017/2018 season. However, due to various challenges in the top three cotton-producing countries, namely India, China and the US, cotton production is expected to decline in certain areas within these countries in 2018/2019.

In India, the area planted to the crop is anticipated to decrease 3% because of boll worm infestation.

China’s supportive policies are expected to sustain the industry, but dry conditions in the country’s main cotton-growing region should lead to fewer hectares planted to cotton in the next season.

Similarly, arid conditions in the western parts of Texas in the US may affect a quarter of that country’s 2018/2019 cotton crop.

LOCAL TRENDS DRIVEN BY THE DROUGHT