Commodities Buzz: Global Cotton Ending Stocks Seen Dropping 3.4 Million Bales On Year To 85 Million Bales

13 Jan 2022 , 01:10 PM

The January edition of World Agricultural Supply and Demand Estimates (WASDE) of the USDA noted yesterday that changes in the global 2021/22 balance sheet for Cotton are relatively small this month, led by a 608,000-bale reduction in world production seen at 120.96 million bales. Projected world production is reduced as lower US production and a 500,000-bale decline in India’s crop more than offsets increases for China, Australia, and Pakistan. The 2021/22 world cotton trade forecast is 385,000 bales lower this month. A 500,000-bale decline in China’s expected imports more than offsets a 200,000-bale increase for Pakistan, and smaller changes elsewhere.

Global Cotton exports are projected lower for the United States and Burkina Faso, but higher for Australia and smaller Franc Zone exporters. The 2021/22 global consumption forecast is virtually unchanged as a 500,000-bale decline in China’s cotton use is offset by gains for India, Mexico, and Pakistan. Global ending stocks for 2021/22 are down 726,000 bales this month, at 85.0 million bales, 3.4 million bales lower than in 2020/21.

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