USDA raises global cotton production & stocks in latest WASDE report

According to the WASDE report, world ending stocks are projected to be 480,000 bales higher than in May, at 83.5 million bales of 480 pounds each. The forecast for production has been raised by 90,000 bales, to 119.14 million bales, based solely on higher area and yield in Myanmar. Consumption was raised by 80,000 bales, to 116.94 million bales, with increases in Vietnam and Myanmar offsetting reductions elsewhere. Revisions to the 2023-24 world balance sheet include higher beginning stocks and production, with reduced trade and consumption, raising ending stocks by approximately 500,000 bales. The ending stock was projected to be 83.49 million bales globally.

The 2024-25 US cotton projections show higher beginning and ending stocks compared to last month. Projected production, domestic use, and exports are unchanged. The 2024-25 season average upland farm price is down 4 cents from the May forecast to 70 cents per pound, following a decline in new-crop cotton futures. Ending stocks are 400,000 bales higher, at 4.1 million, or 28 per cent of use. Revisions to the 2023-24 US cotton balance sheet include a 500,000-bale reduction in exports, to 11.8 million, based on the slowing pace of export shipments, a 50,000-bale increase in domestic use, and a 450,000-bale gain in ending stocks.

Fibre2Fashion News Desk (KUL)