COVID-19 Continues to Pressure U.S Cotton Exports Abroad

MUMBAI, INDIA – A major global competitor for U.S. cotton producers are preparing to harvest a slightly larger crop this year, according to the Foreign Agriculture Service (FAS). Researchers point to good rainfall this season in India which improved yield prospects to 29.4 million bales (480 pounds) on approximately 32.1 million acres. Prices in the country will remain under pressure, FAS reports, because of sizable carryover stocks. Also, the domestic outlook for consumption within the country remains weak as COVID-19 concerns continue to keep consumers away from retail stores. Raw cotton imports in August were 6 percent lower than the previous month. During August, the top cotton suppliers were Egypt, Mexico, and the United States. Imports in August from the United States saw a significant decline. During the past marketing year (2019/20), U.S. exports of raw cotton to India declined 65 percent by volume, and 63 percent by value.
(SOURCE: All Ag News)