The United States Department of Agriculture (USDA) has predicted a higher cotton production of 120.46 million bales, each weighing 480 pounds, in its February 2025 World Supply and Demand Estimates (WASDE) report. The global cotton ending stock was higher by 500,000 bales, and exports increased by 30,000 bales. Cotton exports were projected higher despite global uncertainties.
The USDA has increased the world’s cotton production estimates from the 119.45 million bales projected in the January 2025 report. It has also increased ending stocks to 78.41 million bales from 77.91 million bales in the last monthly report. The world’s domestic consumption of cotton was pegged at 115.95 million bales, compared with an estimate of 115.89 million bales.
World cotton ending stocks also increased by 500,000 bales to 78.41 million.
Despite global uncertainties, cotton exports are up by 30,000 bales.
The US maintains steady export levels at 11 million bales, though domestic consumption has dropped slightly.
Global production estimates were increased by one million bales to 120.46 million bales. Global ending stocks increased by 500,000 bales to 78.41 million bales. The global cotton export forecast was increased by 30,000 bales to 42.51 million bales. It projected exports at 42.48 million bales in its last monthly report.
In the 2024-25 world cotton balance sheet, production and ending stocks have increased, while beginning stocks were lowered this month. Global cotton consumption and trade have increased by a nominal amount. A one-million bale increase in China’s cotton crop accounts for virtually all the increase in world production, as slightly higher production in Brazil is largely offset by declines in Argentina and Kazakhstan. Increases in consumption for Bangladesh, Pakistan, and Vietnam are offset by declines for India and the United States. Small consumption changes elsewhere account for the minimal global increase this month. Higher imports by Bangladesh, Pakistan, and Vietnam are offset by lower imports by China, with small changes elsewhere.
Ending stocks for 2024-25 have been raised by half a million bales as the increase in world production is partially offset by lower beginning stocks due to updates to the 2023-24 balance sheets for China and Uzbekistan.
US cotton exports were forecast at 11 million bales, maintaining a steady trend despite global uncertainties. However, domestic consumption of US cotton was reduced by 100,000 bales for the current season of 2024-25. The ending stock of US cotton was forecast 100,000 bales higher at 4.90 million bales. Beginning stocks and exports are unchanged. The 2024-25 season average Upland farm price projection has been reduced to 63.5 cents per pound.
Fibre2Fashion News Desk (KUL)