Global Cotton Output Down 2.7 Million Bales In 2023-24
In the latest report released by US Department of Agriculture (USDA), the agency has forecast global cotton production to fall by more than 2.7 million bales (One bale = 480 lbs) to 114.1 million bales in 2023-24.
USDA attributed this fall in cotton production to lower cotton crop in US and Uzbekistan.
USDA also revised upwards global cotton usage for the second consecutive month at 116.9 million, mostly led by stronger consumption prospects in China more than offsetting lower use in Uzbekistan.
Worldwide cotton consumption is now forecast at 6.5 million bales in 2023-24, up 5.8 percent compared with the previous year due to mills replenishing low cotton yarn inventories.
Global cotton trade is projected to rise 400,000 bales from the previous month’s forecast to 43.9 million bales, as higher exportable supplies in Brazil support stronger import demand in China.
“This more than offsets lower US cotton exports which are down 1.3 million bales to 12.5 million bales,” USDA averred.
In the latest report, USDA forecast global ending stocks to fall 2.9 million bales to 91.6 million bales, mainly due to drastically lower projected stocks in Brazil. Stocks were also adjusted lower in the US, China, and Mexico.
The August report also projected global cotton production in 2023-24 to be slightly higher at 118.3 million bales with larger cotton crops in Brazil and Argentina.
Brazil production is now forecast at a record 13.9 million bales, slightly higher than the 13.8 million witnessed in 2019/20.
Consumption is projected up more than 700,000 bales in the August report to 110.5 million, led by higher use in China, Turkey, and Bangladesh.
Global ending stocks remained unchanged at 94.0 million bales, 8.5 million higher compared with the previous year.
