The US Department of Agriculture (USDA) has increased the forecast for world cotton production by 130,000 bales of 480 pounds to 112.96 million bales in its latest report released last week. World cotton production was estimated at 112.82 million bales in the February 2024 report.

According to the World Agricultural Supply and Demand Estimates (WASDE) report, world cotton imports increased from 42.88 million bales to 43.23 million bales.

The report indicated that the forecast for domestic consumption also increased to 112.94 million bales this month from 112.46 million bales in February 2024. Cotton exports are projected at 43.26 million bales, up from 42.87 million bales in the previous month. However, the world's ending stocks are projected to decrease to 83.34 million bales in March 2024 from 83.70 million bales.

The US' cotton production estimates were lowered to 12.10 million bales from 12.43 million bales in the previous month. However, cotton exports from the US remained steady at 12.30 million bales. The outbound shipments from the US provide guidance to the global cotton market.

World production is higher as lower crops in the US and Argentina are offset by a 500,000-bale increase in India. Global consumption is almost 500,000 bales higher as gains for China and India more than offset lower estimates for Turkiye and a number of smaller countries.

World trade is approximately 400,000 bales higher as China's 2023-24 imports are raised by 900,000 bales, more than offsetting lower estimates for Turkiye and several smaller countries. Exports are projected to be higher for India, Australia, and Turkiye.

Fibre2Fashion News Desk (KUL)

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