Browse Data and Analysis

U.S. exporters can find ample opportunities in the Iberian Peninsula. Spain is the third-largest European Union (EU) destination for U.S. agricultural products, with Portugal ranking 11th. In 2021, the United States exported $1.6 billion of agricultural products to Spain, or 15 percent of total U.S. agricultural exports to the EU. The United States held a 4 percent market share of Spain’s agricultural imports and 2 percent market share in Portugal, behind other EU member states as a group and Brazil.

The 2022/23 harvested area estimate is reduced significantly due to the recent flooding in key production areas of Sindh and southern Punjab. As a result, the 2022/23 production forecast is lowered 19.4 percent to 5 million bales. To replace the expected decline in domestic output, the 2022/23 import forecast is increased to 5.8 million bales.

Estimated cotton imports for marketing year (MY) 22/23 are reduced to 2.2 million metric tons (MMT) on high carry-in stocks and higher domestic production. MY 22/23 production is increased to 6 MMT on higher yields in Xinjiang. China’s slowing economy and weak domestic demand reduced cotton use in MY 21/22 to 8 MMT and lowered imports to 1.76 MMT.

Interactive Tableau visualization showing the growth in exports of several key bulk agricultural commodities since 1989.

Post forecasts consumption of cotton in the Malaysian textile industry at 290,000 bales in marketing year (MY) 2022/23, a 3.3 percent drop from the previous year post’s estimate. The expected reduction is based on textile companies shifting their operation to other South-East Asian countries as the cost of labor increased in Malaysia with the revision of new minimum wages on April 1, 2022.

Post forecasts consumption of cotton in the Malaysian textile industry at 290,000 bales in marketing year (MY) 2022/23, a 3.3 percent drop from the previous year post’s estimate.

A recent industry survey in one of China’s leading provinces for textile and apparel manufacturing highlights the negative impact of the PRC’s zero-tolerance COVID policy in the world’s largest cotton market and area economy. According to survey results, production estimates are down, costs are higher, and deliveries are delayed.

For 2022/23, Post forecasts cotton planted area to shrink 3 percent compared to the current season, to 1.55 million hectares. The Post forecast for 2022/23 cotton production is 12.6 million bales, or 2.74 million metric tons (MMT), down from 13 million bales (2.83 MMT) in 2020/21.

Through its phased-in tariff reductions, the agreement will raise challenges for U.S. products including wine and spirits, cotton, pulses and beans, forest products, and tree nuts.

Post forecast marketing year (MY) 2022/23 (August to July) area for Mali, Senegal, and Burkina Faso to increase six percent to 1.41 million hectares (Mha) compared to the previous year. However, this growth will depend on the level of government support through the farm gate and input prices which have not yet been announced.

Mexico cotton production and area planted is forecasted to increase in marketing year (MY) 2022/23, mainly due to high global demand and corresponding high prices. Additionally, drought conditions observed during the planting season over the past two years, has encouraged the planting of cotton over other more water reliant crops.

In market year (MY) 2022/23, cotton area harvested is forecast to increase 14 percent to 97,000 hectares (ha), from 85,000 ha in MY 2021/22. Post estimates MY 2022/23 production at 320,000 bales compared to 280,000 bales in MY 2021/22.