The November 2019 World Agricultural Supply and Demand Estimates (WASDE) report has been released by USDA. Here’s this month’s summary for cotton:
This month’s 2019/20 U.S. cotton estimates include lower production and ending stocks due to a smaller crop in the Southwest. While the U.S. production forecast is reduced 4% to 20.8 million bales, domestic mill use and exports are unchanged. U.S. ending stocks are now 900,000 bales lower at 6.1 million but, at 31%, are still forecast at their highest share of use since 2008/09.
The marketing-year average price received by upland producers is forecast at 61 cents per pound – 5% (3 cents) above the October forecast, but 13% lower than the final 2018/19 price of 70.3 cents.
This month’s 2019/20 world cotton forecasts include lower production, lower ending stocks and higher world trade. World production is reduced nearly 3.0 million bales, with reductions occurring primarily in the United States, Pakistan, India and China. There are also smaller declines in the production estimates for Turkey and Turkmenistan. World trade is forecast 1.1 million bales higher, with higher imports by Turkey, Pakistan and India more than offsetting a 200,000-bale decline in Indonesia. Higher exports are projected from Brazil, Malaysia, Benin, Greece, India and several smaller countries.
With little change from the previous month in beginning stocks or consumption, world 2019/20 cotton ending stocks are projected nearly 3.0 million bales lower this month. At 80.8 million bales, world ending stocks in 2019/20 are forecast nearly unchanged from 2018/19.