According to the latest World Agricultural Supply and Demand Estimates report, the overall global demand for cotton appears to be on the decline. Consumption in China dropped significantly, with lower consumption rates in Pakistan, Turkey and Uzbekistan as well.
“There’s some concern about demand at the global level, in terms of aggregate demand for textiles and products and therefore the milling of cotton,” said World Agricultural Outlook Board Chairman Seth Meyer. “So, there is some concern and we did actually trim global demand 1.3 million bales.”
Cotton prices remain lower than where they were earlier in the year but remain slightly above where they were a year ago. “Decline by about 600,000 bales, to 118.7 million bales. That’s down five million from last year, so slight tightening and we’re seeing that in the markets,” said Rob Johansson, United States Department of Agriculture Chief Economist. “We’re sitting at about .74 cents a pound right now in the U.S. in the midpoint of our range that we’re expecting, and futures are running about a nickel above that at .78 to .79 cents a pound.”
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