Cotton Highlights from December WASDE Report

The December 2016 World Agricultural Supply and Demand Estimates (WASDE) report has been released by USDA. Here’s the summary for cotton:

“This month’s 2016/17 U.S. cotton forecasts include increased production, lower domestic mill use, and higher exports and ending stocks. Production is raised 362,000 bales to 16.5 million, due to an increase for Texas, which is partially offset by decreases for the Carolinas. Domestic mill use is reduced 200,000 bales, as recent activity indicates a slowdown in pace compared to the year-ago level. The export projection is raised 200,000 bales on higher production. 

“Ending stocks are now projected at 4.8 million bales, or 31% of disappearance. The forecast range of 64 to 70 cents per pound for the marketing year average price received by producers is narrowed one cent on each end.

“The global 2016/17 forecasts likewise show higher production and increased ending stocks compared with last month. Production is raised for Australia, the United States and others. Consumption is reduced for India, the United States and South Korea, and raised for China and Vietnam. World trade is revised marginally. 

“World ending stocks are raised 842,000 bales to 89.1 million.”