July 13, 2024

USDA Projects US Cotton Production At Nearly 40 Year Low

According to the latest US Department of Agriculture report, the department has projected US cotton production to be down by 300,000 bales to 12.1 million bales, the lowest level in nearly 40 years.

Global cotton production is up about 100,000 bales to 113.0 million as a larger cotton crop in India more than offsets lower production in the United States and Argentina.

“India production is projected up by 500,000 bales to 25.5 million bales but still down slightly from the previous season,” it added

USDA has raised global cotton consumption by nearly 500,000 bales to 112.9 million in which, China consumption is forecast up 500,000 bales due to strong imports.

India’s cotton consumption has also been projected to increase by 300,000 bales on higher production.

Global trade is also up nearly 400,000 bales to 43.2 million as both, China imports and India exports have been raised this month.

China imports are forecast to grow by 900,000 bales to 12.9 million, more than double the previous year’s level.

This is partially offset by lower Pakistan and Turkey imports, each reduced by 200,000 bales due to lower consumption. India exports are raised 400,000 bales on a larger crop and competitive prices.

Global ending stocks are forecast to be down over 300,000 bales to 83.3 million with reductions in India, Pakistan, and the United States offsetting a projected rise in China.

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