The latest U.S. cotton production forecast appears to be marginally higher than October. Cotton estimates are calling for 17.1 million bales. U.S. mill use and export levels are expected to remain the same. Overall international production and consumption levels were lower slightly when compared to October. Vice President of Economics and Policy Analysis for the National Cotton Council, Dr. Jody Campiche explained that market conditions for cotton will largely depend on COVID cases.
“USDA is currently projecting a recovery in world mill use to 114 million bales for the 2020 crop, which is a fairly optimistic projection,” Campiche noted. “While the U.S. and world economies are slowly recovering, the pace of economic recovery is highly dependent on any additional COVID-19 outbreaks and restrictions and the return to more normal social habits by consumers. With higher beginning stocks and lower consumption in 2020, world ending stocks are projected to reach 101.4 million bales for the 2020 crop year.”
Listen to the radio report below.
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