Compiled by China Cotton Network: According to the global production demand forecast released by the United States Department of Agriculture in November, U.S. cotton production and ending stocks in 2019/20 have been reduced month-on-month due to reduced cotton production in the southwest region of the United States. The U.S. cotton production forecast is lowered to 20.8 million bales, a 4% decrease from the previous month. Domestic consumption and exports have not changed. The ending inventory is reduced by 900,000 bales to 6.1 million bales, but the inventory-to-consumption ratio is 31%, still the same as in 2008/09. The highest level since the beginning of the year. The average farm price of upland cotton in the United States is 61 cents/pound, an increase of 3 cents or 5% from the previous month, but a 13% decrease from the 70.3 cents/pound in 2018/19.
Globally, global cotton production and ending stocks were reduced in 2019/20, while imports were increased. Global cotton production has been reduced by nearly 3 million bales. The reduction mainly comes from the United States, Pakistan, India and China. The production of other cotton-producing countries such as Turkey and Turkmenistan has also decreased. Global cotton imports increased by 1.1 million bales from the previous month, imports from Turkey, Pakistan and India were increased, while imports from Indonesia were reduced by 200,000 bales. Export volumes from Brazil, Benin, Greece, and India were increased. Since global opening stocks and consumption have basically remained unchanged month-on-month, this month’s ending stocks have been reduced by nearly 3 million bales from the previous month to 80.8 million bales, which is basically the same as last year.
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