The WASDE report also lowered the global end-of-period inventory estimate to 77.61 million bales, down from 82.63 million bales the previous month. Global consumption was reduced by nearly 1 million bales, primarily due to decreased consumption in China.

For US cotton, the USDA cut its 2024-25 production forecast by 1.9 million bales to 15.11 million bales. The US cotton yield forecast was slightly reduced to 840 pounds per acre, down from 844 pounds per acre. The ending inventory forecast for 2024-25 now stands at 4.5 million bales, down from 5.3 million bales.

The all-cotton planted area has been reduced by approximately 500,000 acres based on Farm Service Agency data, with the abandonment rate estimated at 23 per cent, up 6 per cent from last month. Consequently, the estimated harvested area of 8.6 million acres is about 11 per cent lower than the July WASDE forecast.

The all-cotton yield estimate of 840 pounds per acre is slightly lower than last month's figure. Exports are reduced by 1 million bales due to lower global trade and a smaller crop. Ending stocks are down by approximately 800,000 bales to 4.5 million, or 32 per cent of use, mainly due to the smaller estimated crop.

Fibre2Fashion News Desk (KUL)