Policy shifts and weakening demand reshape the trade landscape; global cotton production will decline in 2026/27.

The International Cotton Advisory Committee (ICAC) released the April 2026 Cotton Monthly Report. The report states that the preliminary forecast for global cotton lint production in 2026/27 shows a decrease of 4% to 24.9 million tons, while global consumption is expected to remain stable at around 25 million tons. The main reasons for the decline in production are falling cotton prices, weak demand, and reduced planting intentions, especially in major producing countries such as Brazil and Australia. In the United States, early planting surveys also indicate that planting intentions will shift from cotton to competing crops such as corn and soybeans. Global cotton lint trade volume is expected to decline by 2.5% to 9.6 million tons due to decreased production and changing global demand. Cotton trade is still expected to be highly sensitive to tariffs, trade agreements, and geopolitical developments, including recent disruptions in global shipping routes.