Global cotton production is reduced 1.9m

Global cotton production is reduced 1.9m

Global cotton production, consumption, and ending stock estimates for 2015/16 have been lowered, reflecting reductions in China, Pakistan, the US, India and Turkey. 

According to the US Department of Agriculture's (USDA) monthly World Supply and Demand Estimates report, production is reduced 1.9m bales to 103.7m bales relative to last month as reductions for Pakistan, China, the US, Turkey, Greece, and Turkmenistan are partially offset by an increase for Australia.

Consumption is down slightly to 111.4m bales from 111.6m bales last month, reflecting reductions for China, India, and Pakistan, which are mostly offset by increases for Vietnam and Bangladesh. 

World ending stocks are now projected 1.7m bales below last month at 104.4m. 

However, projected world trade is raised 1.0m bales, reflecting larger expected imports for Pakistan, Vietnam, and Bangladesh, but lower imports for China. Exports are raised for India, Brazil, and Australia. 

US production is now forecast at 13m bales, down 250,000 from last month, mainly due to lower production in North and South Carolina.

Domestic mill use is unchanged, but exports are reduced 200,000 bales to 10m bales based on the lower available supply and lagging sales to date. The predicted average price of 56-62 cents per pound is narrowed one cent on each end, with the midpoint unchanged from last month at 59 cents.