Global cotton production has seen a marginal increase, now totalling 113.5 million bales, according to the 2023-24 outlook of US Department of Agriculture’s (USDA) Cotton: World Markets and Trade report. This increase is primarily due to higher yields in Afghanistan, Argentina, the United States, and Paraguay, which have more than compensated for the reduced crops in Spain and Mexico.

Notably, Afghanistan is set to achieve a record-level production, while Argentina is expected to have its highest yield in ten years.

In a contrasting development, global cotton consumption is projected to decrease by 500,000 bales, bringing the total to 115.3 million bales. This reduction in consumption is attributed to lower usage in key cotton markets, including the United States, Turkey, and Vietnam. This trend is largely due to weaker-than-anticipated trade activity in the first quarter of the marketing year, as per the report.

Global trade in cotton remains mostly stable, maintaining at 43.3 million bales. However, there have been significant shifts within this steadiness. China's increase in imports has balanced out the reduced volumes destined for Vietnam and Turkey.

There is a notable increase in global ending stocks of cotton, now estimated at 81.5 million bales. This rise of 1.6 million bales is primarily due to an anticipated increase in China’s government reserves, higher production in the U.S., and a decrease in exports from India.

In the United States, the season-average farm price for the 2023/24 cotton crop is forecasted to decline slightly by 3 cents, settling at 77 cents per pound.

Fibre2Fashion News Desk (DP)

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