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Cotton Highlights from June WASDE Report

Cotton Highlights from June WASDE Report

The June 2018 World Agricultural Supply and Demand Estimates (WASDE) report has been released by USDA.

Here’s this month’s summary for cotton:

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The most significant revision to this month’s U.S. cotton supply and demand estimates is a 500,000-bale increase in 2017/18 exports, to 16.0 million bales, due to above-average late season shipments. U.S. ending stocks are now forecast at 4.2 million bales in 2017/18, and 4.7 million bales in 2018/19, for a stocks-to-use ratio of 25%. The projected range of the marketing-year-average farm price is raised 5 cents at each end to 60- 80 cents per pound.

The 2018/19 world projections include lower production for China, Pakistan and Australia, offset in part for higher production for Brazil. World production is nearly 800,000 bales lower this month, while 2018/19 consumption is reduced only 85,000 bales, as a 225,000-bale reduction for South Korea is largely offset by increases for Uzbekistan and Vietnam. World beginning stocks for 2018/19 are unchanged from a month earlier, but ending stocks are 725,000 bales lower. At 83.0 million bales, 2018/19 world ending stocks are projected 5.2 million bales lower than a year earlier, but stocks outside of China are expected to rise for the third consecutive year.