The U.S. Department of Agriculture released its global production and demand forecast for November, which shows that the U.S. cotton supply and demand forecast for 2020/21 is basically unchanged from the previous month. U.S. cotton production has been slightly increased to 17.1 million bales, domestic consumption and exports have not changed, and ending stocks Still at 7.2 million bales, the inventory-to-consumption ratio was 42%, the highest since 2007/08. The average farm price of U.S. upland cotton in 2020/21 is 64 cents, an increase of 3 cents from the previous month, slightly higher than the 59.6 cents in 2019/20.
Globally, global cotton production in 2020/21 was slightly reduced month-on-month. However, due to a slight increase in beginning stocks and a slight decrease in consumption, global ending stocks increased by 300,000 bales. Global cotton opening stocks increased by 378,000 bales month-on-month, mainly due to an increase in Brazil’s cotton production last year. Other adjustments in production include: Pakistan decreased by 800,000 bales, Australia increased by 400,000 bales, China increased by 250,000 bales, Central Asia production was slightly reduced, and global production overall decreased by 160,000 bales month-on-month. Global cotton consumption increased by 160,000 bales month-on-month, mainly due to the decrease in consumption in Pakistan. Global cotton imports increased by 605,000 bales month-on-month due to increased import demand due to a sharp reduction in cotton production in Pakistan, and exports from Brazil and Australia were also increased.