USDA Reduces 2023-24 Global Cotton Use In December Report
In the December forecast of the 2023-24 cotton season, the United States Department of Agriculture (USDA) has reduced global cotton consumption and higher ending stocks than previous month report.
World consumption is expected to decrease by 1.6 million bales, mainly due to a decline of 1.0 million bales in China.
Turkey’s consumption forecast is lowered by 400,000 bales and that of the United States and Mexico are also lowered, while that of Bangladesh has been raised by 100,000 bales.
Global production is expected to be 540,000 bales lower than in November report, as production cuts in the United States, Turkey, and Mexico offset a 200,000 bale increase in Pakistan.
World trade volumes are down only slightly, as China’s imports are expected to increase by 500,000 bales, almost offsetting decreases in Turkey, Pakistan and Bangladesh.
Turkey’s expected export volume will increase, but Brazil’s will reduce by 300,000 bales, and other regions will reduce production to a smaller extent, offsetting Turkey’s expected export volume increase.
Global ending stocks for 2023/24 are expected to increase by 900,000 bales this month, of which China’s stocks are expected to increase by 1.5 million bales.
Total global inventories are expected to be 82.4 million bales, accounting for 72 percent of usage in 2023-24 cotton season.
USDA has also reduced US forecast of cotton production by 314,000 bales to 12.8 million bales, mainly due to a decrease of 500,000 bales in Texas.
As spinning activity continues to lag, US mill usage was forecast to be down by 150,000 bales and reach 1.9 million bales, the lowest level since 1884.
US ending stocks are currently expected to be 100,000 bales lower than November, at 3.1 million bales, accounting for 22 percent of the lost volume.
The upland cotton season average farm price is expected to remain unchanged at 77 cents per pound.
