Cotton Highlights from June WASDE Report

The June 2016 World Agricultural Supply and Demand Estimates (WASDE) report has been released by USDA. Here’s what this month’s report had to say about cotton.

“A marginal reduction of 50,000 bales in 2015/16 domestic mill use is the sole revision in this month’s U.S. cotton supply and demand estimates. U.S. ending stocks are now forecast at 4.1 million bales for 2015/16 and 4.8 million bales for 2016/17. The forecasts for the marketing year average price received by producers are unchanged for both seasons.

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“The world 2016/17 cotton projections include lower beginning and ending stocks, due mainly to reductions in expected production by China. The China crop estimates are reduced 1.3 million bales for 2015/16 and 1.0 million bales for 2016/17, based on reports from Chinese sources indicating that 2015-crop production in eastern China was lower than previously estimated. Projected 2016/17 production is also reduced for Egypt and the African Franc Zone, with Egypt’s production pegged at its lowest level since the mid-1800s. Slightly lower world consumption includes a reduction for India, partially offset by an increase for Turkey.

“Projected global stocks of 94.7 million bales are 1.7 million bales below last month, reflecting a 2.0-million-bale decrease in China ending stocks.”

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