In the most recent report, the U.S. Department of Agriculture (USDA) lowered its estimate for world cotton production. Vice President of Economics and Policy Analysis for the National Cotton Council, Dr. Jody Campiche explained world production has been reduced by 130,000 bales.
“Along with the reduction of the U.S. crop, USDA also lowered production for Brazil, Pakistan, and Australia. However, USDA increased India’s crop by one million bales due to a record level of planted acreage,” said Campiche. “World consumption was also reduced slightly by 130,000 bales, mostly due to a decline in Vietnam’s consumption estimate.”
With expectations for U.S. cotton exports of 16.5 million bales being unchanged from last month, Campiche noted there could be some difficulty in achieving that number because of the ongoing trade tensions with China. “While export sales are very strong at this point in the marketing year, China currently represents 19 percent of total sales commitment. Ending stocks are projected to be seven million bales which is the largest level since the 2007 marketing year,” said Campiche.
Listen to the report below.