The U.S. Department of Agriculture (USDA) raised the forecast for 2017/18 global production of cotton by nearly 600,000 bales this month due to revisions in Sudan’s estimates back to 2013/14 and higher area in Australia, partially offset by smaller crops in the United States and Uzbekistan.
Sudan’s 2017/18 forecast is raised 730,000 bales based on reports of new technology and investment, and Australia’s production is raised 300,000 bales following reports area previously forecast for sorghum was planted to cotton, the USDA said in its latest World Agriculture Supply and Demand Estimates report.
The report raised world consumption slightly, while forecasting global trade 600,000 bales higher, as higher expected imports by Turkey, Bangladesh, China, and Vietnam more than offset a decline for Taiwan.
“World ending stocks are now projected at 88.8 million bales, nearly 300,000 bales above last month,” it said.
According to the USDA, this month’s 2017/18 U.S. cotton forecasts show lower production, higher exports, and lower ending stocks relative to last month.
Production is reduced 233,000 bales to 21.0 million, based on the March 8 Cotton Ginnings report, the WASDE said, adding that the final estimates for this season’s U.S. area, yield, and production will be published in the May 2018 Crop Production report.
“Domestic mill use is unchanged from last month, but exports are raised 300,000 bales to 14.8 million, based on stronger world demand and expectations of above-average shipments during the second half of the marketing year,” the report said.
Ending stocks are lowered 500,000 bales to 5.5 million, it added.