USDA Predicts Monthly Report To Cut Global Cotton Output And Consumption

Recently, the US Department of Agriculture released the global cotton supply and demand monthly report, raised the initial inventory and ending inventory, slightly reduced production and lowered consumption and trade volume.


As the initial inventory increased by 230 thousand tons, and consumption fell by 143 thousand tons, 2019/2020 global cotton end inventory increased by 342 thousand tons compared with May. Due to the increase in cotton production in India in 2018/2019 and the reduction of 2018/2019 cotton consumption in China, the global cotton stocks at the beginning of the year were substantially increased. Global cotton consumption and imports fell sharply in 2019/2020, due to a 109 thousand tonnes reduction in cotton consumption and imports in China. The decline in global cotton exports is due to a decline in Australian cotton production, though partly offset by the increase in India's cotton exports. The US cotton supply and demand situation in 2019/2020 has not changed since May, and the average annual sales price of cotton growers is estimated at 64 cents / pound. There was no change in the US cotton supply and demand balance in 2018/2019.