Mumbai, 10 Dec (Commoditiescontrol): The USDA’s December WASDE report reveals upward revisions in the global cotton market outlook, primarily driven by increased production and higher ending stocks. Despite these adjustments, consumption remains steady, reflecting underlying demand concerns.
Global cotton ending stocks for the 2024/25 marketing year have been revised upward to 76.02 million bales, an increase of 270,000 bales from the November estimate of 75.75 million bales. This adjustment reflects higher production levels and slight increases in supply.
For the United States, ending stocks are projected at 4.4 million bales, up from November’s 4.3 million bales. This rise results from an increase in U.S. production, which has been revised up by 64,000 bales to 14.26 million bales. Meanwhile, the stocks-to-use ratio stands at approximately 34%, unchanged from previous expectations.
Global cotton production has been increased to 117.39 million bales, up from November’s estimate of 116.18 million bales. Key contributors include higher-than-expected yields in the U.S. and several foreign markets. U.S. yields rose marginally to 792 pounds per harvested acre, reflecting better performance in the Southeast and Delta regions.
Foreign production has also risen, with estimates reaching 103.13 million bales compared to 101.99 million bales in the prior report. Countries such as India and Australia have contributed to the improved outlook, offsetting reductions in other regions.
Global consumption remains largely unchanged at 115.79 million bales, reflecting stable but subdued demand across major consuming nations. China, the world’s largest cotton consumer, shows limited growth in its domestic use as economic uncertainties continue to weigh on textile production.
Global cotton trade is forecast at 42.26 million bales, up slightly from November’s 42.18 million bales. This increase reflects modest improvements in export expectations from Brazil and Australia, alongside stable U.S. exports of 11.3 million bales. Import demand, particularly from Bangladesh and Vietnam, remains steady, further supporting trade flows.
The December report highlights a cautious but slightly improved outlook for the cotton market. While production gains and higher stocks provide a buffer, steady consumption underscores ongoing demand challenges. The U.S. continues to play a significant role in global cotton trade, supported by robust export levels and improved yields.
Overall, the cotton market remains in a delicate balance, with rising stocks and steady demand setting the tone for the months ahead. Traders and industry stakeholders will closely watch weather conditions, trade policies, and economic recovery signals for further direction.
(By Commoditiescontrol Bureau: 09820130172)
0 Comments 
Post Comment 
