Global cotton production forecast down to 115.4 mn in 2022-23: USDA

US’ 2022-23 exports are lowered 250,000 bales compared with the previous month to 12 million bales. This is despite higher US production and is attributed to lower global demand, with global consumption forecast down more than 800,000 bales compared with the previous month to 110.9 million.

Major consumers including India, China, and Pakistan are facing challenges including a downward trend in profit margins and yarn orders, which in turn have resulted in conservative buying practices for cotton lint. Additionally, a lower global consumption forecast reflects the slowing of overall global demand for cotton products, as per USDA’s report.

China still remains the largest destination for US cotton exports, but outstanding sales are significantly lower compared with the previous year. Despite Pakistan holding the largest portion of US outstanding sales, issues with financing are slowing shipments and new sales.

Lower projected US exports are expected to increase US ending stocks to 4.2 million bales, 700,000 bales higher compared with last month and symbolic of lower global consumption prospects.

Fibre2Fashion News Desk (DP)