The latest U.S. Department of Agriculture (USDA) estimates for 2012/13 project that global cotton stocks are expected to reach a new record at 74.7 million bales, 10 percent above 2011/12.Stocks have risen as a result of: 1) the recent record cotton prices that encouraged cotton production but reduced mill demand for the fiber; and 2) China’s cotton policies that are supporting domestic prices above world market clearing levels.
While global cotton stocks will increase for the third consecutive season, the stock growth has largely occurred in China. In 2010/11, China’s 23-percent share of world stocks was its lowest in two decades, and extensive purchases to rebuild its national reserve began. By the end of 2012/13, China’s share is projected to double to 46 percent, nearly matching the share of stocks held by all other foreign countries combined.
The latest U.S. Department of Agriculture (USDA) estimates for 2012/13 project that global cotton stocks are expected to reach a new record at 74.7 #
A policy change by China’s Government will be needed to make these stocks available to the market.
U.S. Department of Agriculture (USDA)
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