Cotton production is estimated lower in India and Pakistan

Cotton production is estimated lower in India and Pakistan

Estimates for 2015/16 global cotton ending stocks have been reduced, with lower consumption partially offsetting lower production. 

According to the US Department of Agriculture's (USDA) monthly World Supply and Demand Estimates report, world ending stocks are now projected at 103.3m bales, down from 104.1m bales last month. 

Production is estimated lower in India and Pakistan, down 1m bales to 26.8m bales and 200,000 bales to 7m bales respectively, based on arrivals at gins. The USDA said the reduction in India's crop reflects an early withdrawal of monsoon rainfall combined with pest damage in the northern states. 

However, Australia is projected at 2.5m bales, up from 2.4m bales last month. 

Consumption is reduced mainly in Pakistan – 200,000 bales to 9.6m bales – based on lower available supplies. 

Meanwhile, US cotton supply and demand estimates are unchanged from February. The USDA said marginal adjustments in harvested area and yield reflect NASS's resurvey of the South Carolina crop. 

The predicted average price is now forecast to range from 58-60 cents per pound, with the midpoint of 59 cents reduced from the February estimate of 59.5 cents due to declining market prices.