Home / Knowledge / News / Textiles / Cotton stocks are expected to decrease
Cotton stocks are expected to decrease
12
Jun '10
The latest U.S. Department of Agriculture (USDA) projections for 2010/11 indicate that world cotton stocks are expected to decrease for the second consecutive season and drop below 50 million bales for the first time in 7 seasons. Global ending stocks are currently projected at 49.6 million bales for 2010/11, 5 percent (2.6 million bales) below 2009/10 and the lowest since 2003/04's 48.1 million bales (fig. 1).

Global cotton stocks have been drawn down considerably in most countries since 2008/09, as a result of lower production and higher consumption. Favorable competing crop prices reduced world cotton area between 2007/08 and 2009/10. While an area rebound and increased output are expected for 2010/11, projected production is not forecast to offset the combination of sharply lower beginning stocks and slightly higher consumption. The reduction in world stocks in 2010/11 is largely attributable to China, where stocks are projected to decline 2 million bales in 2010/11 to 18.6 million. See the Highlight section of this report for more details about China's cotton stock situation.

Domestic Outlook
Planting of the 2010 U.S. cotton crop was complete or near completion in all but a few States across the Cotton Belt in early June. As of June 6th, 91 percent of the expected U.S. cotton area had been planted, compared with 86 percent last year and the 5-year average of 88 percent. Although planting progress was below 90 percent in early June for Georgia, Kansas, Oklahoma, and Texas, these States' progress was above their respective 5-year averages. In addition to planting progress, 8 percent of the national crop area was squaring, slightly below the 5-year average.

Meanwhile, early cotton crop conditions indicate a very good start to the U.S. growing season. As of June 6th, 66 percent of the cotton area was rated “good” or “excellent,” while only 4 percent was rated as “poor.” This season's conditions are similar to the beginning of the 2004 season, when conditions remained very good throughout the season and a then-record yield was produced.

Minor Revisions to 2009/10 and 2010/11 Estimates
Adjustments to the U.S. cotton supply and demand estimates were limited in June. This month's revisions included a 200,000-bale reduction in ending stocks for each season that resulted from an increase in 2009/10 exports. For 2009/10, U.S. cotton exports were increased to 12.25 million bales in June, reflecting strong sales which reached 13 million bales as of early June. As a result of the increased demand, 2009/10 ending stocks are now estimated at 2.9 million bales, 3.4 million below the beginning level and the lowest since 1995/96.

For 2010/11, there were no revisions to production or demand this month. The U.S. crop remains forecast at 16.7 million bales based on area reported in USDA's Prospective Plantings. An update to cotton area will be issued at the end of June in the Acreage report, which will combine actual plantings as of early June with estimates for any remaining cotton to be planted. Projected demand in 2010/11 remains estimated at 16.8 million bales, 7 percent above the latest 2009/10 estimate and similar to 2008/09. Consequently, the reduction in 2009/10 ending stocks followed through to the 2010/11 projection, as stocks on July 31, 2011 are now forecast at only 2.8 million bales, the lowest in 15 years. Likewise, the stocks-touse ratio—at 16.7 percent—is at its lowest since 1995/96. The forecast for the 2010/11 U.S. average farm price is projected to range between 60 and 74 cents per pound, compared with a 62.5-cent average estimated for 2009/10.


Must ReadView All

Textiles | On 24th Jul 2017

Govt extends deadline for GST composition scheme to Aug 16

The Government on India has extended the deadline for small...

L-R: Dhanapal, JMD, Best Corporation; Prabhu Damodaran, Convenor, ITF; Narayanasamy, MD, Micro Cotspin; Senthilnathan, MD Rasitex India; and Sabapathy, MD, Prasanna Spinning Mills

Textiles | On 24th Jul 2017

TN mills seek partnership with cotton growing states

Spinning mills in Tamil Nadu are seeking stronger partnership with...

Textiles | On 24th Jul 2017

Irani terms GST as a ‘great step towards transparency’

Union textiles minister Smriti Irani has termed the Goods and...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X