Mexican cotton outlook has been improving gradually due to consistently rising cotton demand across the world and assurance of logistical transport advantage for trade through the US-Mexico-Canada Agreement (USMCA). Increasing freight costs have also discouraged garment imports from Asian countries, causing Mexico’s textiles and clothing production to rise.
Imports of US cotton has also increased to fulfil the rising cotton demand from domestic mills as Mexico’s cotton production is not sufficient. However, cotton production is expected to move up in the upcoming period to meet the demands of the domestic mills. The expected increase in the cotton area harvested will help boost cotton production in the country.
The country’s cotton production went down from 1.661 million 480 lb bales in MY 2019-20 to 1.060 million 480 lb bales in MY 2020-21. However, it is expected to surge by 10.66 per cent to 1.173 million 480 lb bales in MY 2021-22.
As for the cotton imports of Mexico, they were 570,000 480 lb bales in MY 2019-20, 1 million 480 lb bales in MY 2020-21 and is expected to record a rise of 10 per cent over MY 2020-21 to reach 1.1 million 480 lb bales in MY 2021-22.
Mexico consumed close to 1.5 million 480 lb bales of cotton in MY 2019-20, as per TexPro. The consumption increased by 33.33 per cent to 2 million 480 lb bales in MY 2020-21 and is further expected to surge to 2.025 million 480 lb bales in MY 2021-22.-
Source: fibre2fashion