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Global 2020-21 cotton ending stocks highest in 6 yrs: USDA

Jun '20
Global 2020-21 cotton ending stocks highest in 6 yrs: USDA
Cotton projections for 2020-21 (August-July) indicate that global cotton ending stocks are forecast at their highest in 6 years, the June month's Cotton and Wool Outlook released by the US department of agriculture (USDA) said. World stocks are projected to rise for the second consecutive season in 2020-21 to 104.7 million bales, 4 per cent above 2019-20.

World stocks at the end of 2020-21 season are projected to be the second largest on record behind 2014-15, the Economic Research Service of the USDA said. At the end of 2014-15, global stocks totalled 106.7 million bales, with China accounting for 62 per cent of the total as government policies there resulted in surplus stock accumulations. As subsequent policies reduced China’s stocks, the share of global cotton supplies for other countries increased in recent years.

For 2020-21, cotton stocks in China are forecast lower at 35.6 million bales—34 per cent of the world total. Meanwhile, stocks outside of China are expected to rise 9 per cent to 69.1 million bales, with stock gains for India and the United States over the past 2 years leading the increase. For India, stocks are projected to reach a record 21.1 million bales (20 per cent of the total) in 2020-21, resulting from large crops and reduced demand. For the United States, cotton stocks are forecast at 8.0 million bales (8 per cent of the total), the highest since 2007-08.

Fibre2Fashion News Desk (RKS)

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