ICAC forecasts global cotton outlook stable for 2025/26 season!
By yash chouhan 2025-06-04 14:58:54
Cotton Market to Remain Stable: ICAC Forecast
The International Cotton Advisory Committee (ICAC) has maintained the global outlook stable for the 2025/26 cotton season. It forecasts production at 26 million tonnes and consumption at 25.7 million tonnes. Trade volumes are expected to rebound, rising by 2 per cent from the previous season to around 9.7 million tonnes. This increase will be driven by higher carryover stocks and projected mill demand.
ICAC's regional production forecasts show upward revisions for Brazil, the United States and West Africa. However, these gains are likely to be offset by a slight decrease in Chinese production. Despite the decrease, China is expected to lead global production in 2025/26 with 6.3 million tonnes. After a record yield of 2,257 kg/ha in the current season, it is expected that China will continue to lead global production with a slight decrease in production.
Supply remains stable, but global cotton consumption continues to be under pressure due to tariffs, regulatory uncertainty and increasing competition from alternative fibres. ICAC warns that the cotton trade outlook, although positive, could be impacted by geopolitical trade tensions and evolving tariff structures. ICAC Secretariat price forecasts put the average A index at 81 cents per pound for 2024/25.
For the upcoming 2025/26 season, preliminary estimates suggest a wide price range between 56 and 95 cents per pound, with a midpoint forecast of 73 cents. These estimates are based on current market fundamentals and were provided by ICAC economist Lorena Ruiz. ICAC continues to monitor developments in production, consumption and trade that could influence cotton market dynamics in 2026.
