Reduction in World Mill Use for Cotton

Clint Thompson Alabama, Cotton, Florida, Georgia

Cotton use is down by 7.6 million bales.

In their April report, the U.S. Department of Agriculture (USDA) reduced world mill use for cotton for the 2019-2020 crop year by 7.6 million bales, as compared to the March estimates. At 110.6 million bales, this would be one of the largest annual declines on record with lower consumption estimates for every major country. For comparison, in the 2018 crop year, world mill use was 120.3 million bales total. Vice President of Economic and Policy Analysis for the National Cotton Council (NCC), Jody Campiche, says more export cancellations are expected.

She says the collapse in cotton demand is being felt across the U.S. cotton industry from textile manufacturers to cotton producers and all segments in between.

On top of low prices, Campiche notes the COVID-19 pandemic is devastating textile supply chains as retail outlets shutter their doors.