THE United States Department of Agriculture’s (USDA) latest cotton outlook has raised projections for 2017/18 world cotton production, consumption and ending stocks, but has reduced trade estimates by two per cent.
Predictions of higher global consumption reflect increases for China, India, and Pakistan, largely due to higher domestic supplies.
China’s consumption is raised in both 2016/17 and 2017/18, as sales from the national reserve and steady imports suggest that consumption there is stronger than previously estimated.
A reduction of nearly 800,000 bales in world imports results primarily from lower expected demand by Pakistan and Mexico.
Exports are lowered for the United States, India, Brazil and others.
World ending stocks are now projected at 87.7 million bales, the lowest since 2011/12.
Source: USDA, https://www.usda.gov/oce/commodity/wasde/latest.pdf