Global cotton opening stocks downgraded by 394,000 tons in 2016/17

On July 12, the U.S. Department of Agriculture issued a monthly report on global cotton supply and demand forecasts. As a result of the global cotton production cuts for 2015/16 and 2016/17, the consumption has been significantly increased. Therefore, global cotton stocks in these two years are reduced. Both are down.

The global initial inventory in 2016/17 has been reduced by 394,000 tons, mainly because China’s consumption in 2015/16 has been increased by 327,000 tons. The recent strong demand for national reserve cotton shows that the consumption of spinning mills is higher than before The estimate. China's consumption in 2016/17 is also raised.

Global cotton production in 2016/17 was reduced by 135,000 tons. Although US production is expected to increase, production in Pakistan and India will decrease. Australia’s production also increased, but Greece and Uzbekistan declined. The decline in cotton output will increase imports and reduce exports, especially for Pakistan.

Global cotton ending stocks are forecast at 198.6600 tons, which is 1.956 million tons less than the beginning of the period.

In the United States, the report raised the 2016/17 production and export volume, and the opening and closing stocks were downgraded from the previous month.

According to the planting area report of June 30, the appropriate absolute yield and higher yield, the total output is expected to increase by 218,000 tons from last month.

There was no change in textile consumption, but the volume of exports increased sharply due to the increase in supply and the continuous tightening of international inventories.

Producers are expected to get an average annual sales price between 52-66 cents per pound, the lower limit is raised by 5 cents, and the upper limit is lowered by 1 cent, with an average of 59 cents per pound, up 2% from the previous month. Minute.


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