In the early weeks of 2022, the supply chain disruptions continue to affect the US and world cotton market and the COVID-19 Omicron variant is creating disruptions in various parts of the world, according to the National Cotton Council (NCC) economists who have pointed out a few key factors that will shape the US cotton industry’s 2022 economic outlook.
A tighter US balance sheet, supply chain disruptions, speculative money flow, overall increases in commodity prices, and strong demand are creating a bullish sentiment for cotton prices. However, additional restrictions related to the COVID-19 pandemic, a slow-down in world economic activity, and low man-made fibre prices could put downward pressure on cotton prices in 2022.
A tighter US balance sheet, supply chain disruptions, speculative money flow, overall increases in commodity prices, and strong demand are creating a bullish sentiment for cotton prices. However, additional restrictions related to the COVID-19 pandemic, a slow-down in world economic activity, and low man-made fibre prices could put downward pressure on cotton prices in 2022.