Record Reductions in Cotton Mill Use and Trade
WASHINGTON, DC – Earlier this month, world cotton mill use was reduced nearly 7.6 million bales (6.4 percent) – a record monthly change – as disruptions from COVID-19 affect the cotton supply chain from spinning to retail. According to USDA, global mill use is now forecast at 110.6 million bales, 8 percent below last year and the lowest in 6 years. The reduction has also impacted raw cotton fiber demand at spinning mills, with the world trade estimate lowered 3 million bales (6.8 percent) this month as a result. The global cotton trade is now forecast slightly below 2019 at 40.6 million bales, the lowest in 3 years. While mill use and trade adjustments were made for most countries in April, the United States – the world’s leading exporter – experienced one of the largest monthly reductions in projected U.S. cotton exports on record.