The US has lifted its cotton production, exports and ending stock forecasts

The US has lifted its cotton production, exports and ending stock forecasts

Estimates for 2015/16 US cotton production, exports and ending stocks have been raised, thanks to a larger supply of the fibre.

According to the US Department of Agriculture's (USDA) monthly World Supply and Demand Estimates report, production is lifted to 13.4m bales from 13.1m bales last month, as an increase of 458,000 bales for Texas is partially offset by revisions for other states.

Exports are raised to 10.2m bales from 10m, based on the larger available supply, while ending stocks are now projected at 3.2m bales, or 23% of disappearance, from 3.1m bales in the prior month. 

Domestic mill use is unchanged, while the predicted average price has been lowered 3 cents at the midpoint to 56-68 cents per pound, due to larger US supplies and lower world consumption.

With lower 2015/16 global cotton consumption, and virtually unchanged global supplies, world ending stocks are projected to reach 106.3m bales, up from last month's estimate of 105.2m.

Production is reduced for Brazil and Pakistan, partially offset by the increase for the US. Forecast world consumption is reduced for several countries, including Brazil, India, Indonesia, Pakistan, Thailand, and Turkey, as economic uncertainties and rising yarn stocks point to lower-than-expected demand.