ICAC holds world cotton production at 26 MT, consumption at 25.7 MT
The International Cotton Advisory Committee (ICAC) has projected that world cotton production and consumption will remain steady in 2025–26, according to its July 2025 report. Global cotton production and consumption are forecast to reach approximately 26 million tonnes (MT) and 25.7 million tonnes, respectively, while cotton trade is expected to rebound to 9.7 million tonnes.
In 2024–25, global production and consumption stood at 25.687 million tonnes and 25.526 million tonnes, respectively.
ICAC projects steady global cotton production and consumption in 2025â€'26 at around 26 million tonnes and 25.7 million tonnes, respectively. Trade is expected to rebound to 9.65 million tonnes. Production gains in Brazil, US and West Africa may be offset by a decline in China. Consumption faces pressure from tariffs and competition. The A Index price forecast ranges between 56â€'95 cents per pound.
Regionally, the ICAC has revised production estimates upward for Brazil, the US, and West Africa. However, these gains are likely to be offset by a slight decline in China's output in 2025–26. Following record yields of 2,257 kg/ha—the highest ever recorded—the ICAC projects that China will produce around 6.3 million tonnes, slightly less than the current season but still the highest globally.
World cotton consumption is expected to remain under pressure due to anticipated tariff hikes, regulatory challenges, and competition from other fibres. Global cotton trade is projected to rise by 2 per cent to 9.65 million tonnes, driven by increased stock levels from the current season and projected mill demand. However, trade agreements and tariffs could influence next season's trade outlook.
Regarding prices, the ICAC stated that the average A Index for the 2024–25 season is forecast at 81 cents per pound. For 2025–26, the preliminary forecast—based on current supply and demand estimates—ranges from 56 to 95 cents per pound, with a midpoint of 73 cents.
Fibre2Fashion News Desk (KUL)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fibre2Fashion
13 hours ago
- Fibre2Fashion
Uganda reduces import duty on fabrics, garments
Uganda recently announced major tax relief measures for start-up businesses along with reducing import duty on fabrics and garments. The announcements came in the budget presentation for fiscal 2025-26 by finance minister Matia Kasaija. Uganda recently announced major tax relief measures for start-up businesses along with reducing import duty on fabrics and garments. Starting July 1, the import duty on fabrics will drop to $2 per kg, or by 35 per cent, whichever is higher, down from the previous $3 per kg. In addition, the duty on imported garments will decrease to $2.5 per kg, or by 35 per cent, down from $3.5 per kg. Starting July 1, the import duty on fabrics will drop to $2 per kg, or by 35 per cent, whichever is higher, down from the previous $3 per kg. In addition, the duty on imported garments will decrease to $2.5 per kg, or by 35 per cent, down from $3.5 per kg. The measures are expected to help traders engaged in value addition and stimulate further growth in the textile sector, according to domestic media reports. The government said these tax cuts and incentives are part of a broader strategy to stimulate the economy, create jobs and enhance the country's position as an attractive destination for investment. These are aimed at fostering innovation, supporting local industries, and stimulating the country's economic growth. A three-year income tax holiday for businesses established by Ugandan citizens will be implemented from July 1. The initiative is designed to ease the burden of high initial investment costs that often hinder the growth of start-ups. This tax incentive, Kasaija said, will foster innovation, support the formalisation of small and medium enterprises, and improve business survival rates. Fibre2Fashion News Desk (DS)
Fibre2Fashion
2 days ago
- Fibre2Fashion
US' J.Jill's Q1 sales dip 4.9% as OMS transition impacts growth
US-based women's apparel retailer Inc has reported a 4.9 per cent year-on-year decline in net sales to $153.6 million for the first quarter ended May 3, 2025, citing a $2 million impact from its Order Management System (OMS) cutover. Comparable sales, including both in-store and direct-to-consumer channels, fell 5.7 per cent. Direct-to-consumer sales, accounting for 46.7 per cent of total revenue, declined by 5.4 per cent. Gross profit slipped to $110.4 million, with gross margin down slightly to 71.8 per cent from 72.9 per cent a year ago, the company said in its financial statement. Operating income dropped to $19.1 million from $28.4 million, while net income fell to $11.7 million from $16.7 million in Q1 FY24. Earnings per diluted share declined to $0.76 from $1.16. Adjusted EBITDA stood at $27.3 million, down from $35.6 million. The company closed three stores during the quarter, ending with 249 locations. Inventory levels rose to $60.6 million, and free cash flow dropped significantly to $2.6 million from $19.2 million in the previous year. repurchased 186,800 shares for approximately $3.5 million. ' is a brand with a long history, an extremely loyal core customer, and so much opportunity ahead, and I am thrilled to join the team as its new CEO,' said Mary Ellen Coyne, chief executive officer and president of Inc. 'Having spent the last three decades in women's apparel I have a proven track record of growing businesses profitably, supported by my deep understanding of the industry and admiration for this underserved customer segment. Since joining at the beginning of May, I have been immersing myself in the business, engaging with our teams, visiting stores, and talking with associates and customers. The fundamentals of this business are solid with a lean operating model, strengthening omni-channel capabilities, and a team committed to excellence. This foundation will serve us well as we navigate a challenging macro environment while establishing our plans for the future.' Amid macroeconomic uncertainties and a recent leadership transition, withdrew its previously issued full-year fiscal 2025 guidance and suspended forward-looking forecasts, except for capital expenditures, expected between $20 million and $25 million, and plans to open 1 to 5 new stores. US-based women's apparel retailer Inc has reported a 4.9 per cent year-on-year drop in Q1 FY25 net sales to $153.6 million, impacted partly by an OMS transition. Comparable and direct-to-consumer sales declined, while gross margin fell to 71.8 per cent. Net income dropped to $11.7 million, prompting the withdrawal of full-year guidance. Fibre2Fashion News Desk (KD)
Fibre2Fashion
2 days ago
- Fibre2Fashion
Drewry WCI inches up, container freight rates jump 59% in 4 weeks
The Drewry World Container Index (WCI)—a composite measure of container freight rates—edged up by 0.45 per cent to $3,543 per 40-foot equivalent unit (FEU) on June 12, rising from $3,527 per FEU the previous week. The index has surged 59 per cent over the past four weeks, as President Donald Trump's 'pause' on import tariffs led to the resumption of US-bound traffic following the initial collapse in Transpacific volumes. Freight rates from Shanghai to New York rose by 2 per cent to $7,285 per 40ft container over the past week and by 67 per cent since May 15. Meanwhile, spot rates to Los Angeles increased by 1 per cent over the week and by 89 per cent over the past four weeks. Prices on the Transpacific eastbound route changed marginally amid a fresh injection of capacity. Drewry WCI rose 0.45 per cent to $3,543 per FEU on June 12, marking a 59 per cent increase in four weeks. Transpacific rates surged as US-bound traffic resumed following President Trump's pause on import tariffs. Rates to New York and Los Angeles rose sharply, while those to Europe remained stable. However, Drewry forecasts a rate decline in H2 2025 amid uncertain tariff policies and capacity shifts. Freight rates from Shanghai to Rotterdam and Genoa remained stable during the past week, at $2,837 and $4,054 per 40ft container, respectively. The recent sharp, short-term strengthening in the global container shipping supply-demand balance has reversed the declining rate trend that began in January. However, Drewry's Container Forecaster predicts the supply-demand balance will weaken again in the second half of 2025, likely leading to a decline in spot rates. The volatility and timing of rate changes will depend on the outcome of legal challenges to Trump's tariffs and on capacity adjustments linked to the introduction of US penalties on Chinese ships—both of which remain uncertain. Fibre2Fashion News Desk (KUL)
