Insights
- USDA has lowered global cotton ending stocks to 83.08 mn bales for 2023-24, noting a slight YoY increase.
- Despite lower stocks in West Africa, Australia and Brazil, China's higher supplies balance the scales.
- Global demand has risen to 156.39 mn bales, with production cuts and increased imports.
- US cotton supply and demand figures are largely stable.
The US Department of Agriculture (USDA) has further reduced the global cotton ending stocks to 83.08 million bales of 480 pounds for the current season 2023-24 in its April 2024 World Supply and Demand Estimate (WASDE) from the 83.34 million bales of the March estimates. The ending stock at the end of July this year will be slightly higher year-on-year. Last year, the ending stock was estimated at 83.34 million bales. Lower stocks across West Africa, Australia, and Brazil more than offset higher supplies in China.
According to the report released yesterday, total demand was increased to 156.39 million bales from 155.80 million bales of the March 2024 estimate. It was estimated at 147.54 million in the last season. World cotton production was also cut from 112.96 million bales to 112.92 million bales, against last season’s production of 116.15 million bales. Total imports will be 43.94 million bales, up from 43.23 million bales of the March estimate and 37.68 million bales of imports in the last season.
USDA has lowered global cotton ending stocks to 83.08 mn bales for 2023-24, noting a slight YoY increase.
Despite lower stocks in West Africa, Australia and Brazil, China's higher supplies balance the scales.
Global demand has risen to 156.39 mn bales, with production cuts and increased imports.
US cotton supply and demand figures are largely stable.
The total supply of cotton will be 239.47 million bales, against the last estimate of 239.16 million bales. Last year, the total supply was estimated at 230.15 million bales. Similarly, domestic consumption was decreased from 112.94 million bales to 112.82 million bales, compared to last season’s use of 111.22 million bales. World cotton exports were estimated at 43.97 million bales, which was 0.71 million bales higher than the estimate of 43.26 million bales in March 2024. The exports were noted at 37.04 million bales in the last season. A 1.3 million-bale increase in China’s imports is only partially offset by reductions for Pakistan and Indonesia. Exports from Brazil, Australia, and Turkiye are all projected to be higher.
The US 2023-24 cotton supply and demand projections are almost unchanged this month, with ending stocks forecast at 2.5 million bales. The marketing year price received by upland cotton producers is projected to average 76 cents per pound, a decrease of 1 cent from last month.
Fibre2Fashion News Desk (KUL)
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