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Cotton Prices Stable, But Growers Face Squeeze
19 Dec
Summary
- Cotton prices are stable but low, impacting growers due to rising input costs.
- Chinese cotton imports have significantly decreased, affecting global demand.
- Regenerative agriculture practices are suggested to improve farm profitability and resilience.
Cotton prices have remained stable but low, creating difficulties for growers who are contending with a 30 percent increase in input costs since 2019. This situation is exacerbated by a significant drop in Chinese cotton imports, which fell from 15 million bales in 2023/24 to an estimated 5 million bales in 2024/25. Concurrently, increased supply from countries like Brazil has intensified international price competition.
To mitigate these challenges, regenerative agriculture practices are being promoted as a pathway to long-term profitability and crop resilience. These methods, while requiring initial investment, build soil health and create a buffer against extreme weather events, helping maintain fiber quality. Despite some weather improvements in key U.S. growing regions for the 2025/26 crop year, higher national yields could further depress prices due to increased global supply.
Looking ahead, cotton prices are expected to stay relatively stable and low. Global macroeconomic growth remains muted, and ongoing uncertainty regarding U.S. tariffs on imports, including those targeting China, could temper demand. Brands are increasingly investing in regenerative agriculture to enhance supply chain resilience and address environmental concerns, underscoring a growing need for supplier and designer support for farmers.
