Market Observation: Pay Attention To USDA Cotton Monthly Report Trade Volume Inventory In March

Cotton: The supply and demand forecast of American cotton in 2023/24 this month remains unchanged, and the ending inventory is expected to be 2.5 million bales, accounting for 18% of the total inventory. The annual sales price received by upland cotton producers is expected to average 76 cents per pound, down 1 cent from the previous month.

The 2023/24 global cotton supply and demand forecast shows that compared with the previous month, the trade volume increased and the ending inventory decreased. World production and consumption have remained basically unchanged.

It is estimated that the global trade volume in 2023/24 this month will increase by 700000 bales to nearly 44 million bales. The 1.3 million bales increase in China's import volume will only be partially offset by the reduction of Pakistan and Indonesia.

The export volume of Brazil, Australia and Turkey is expected to increase.

It is estimated that the inventory at the end of 2023/24 this month will decrease by nearly 300000 packages, because the decrease of inventory in West Africa, Australia and Brazil will offset the increase of Chinese supply.