Global cotton output lowered on decline in U.S., Brazil crops

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Global cotton production for 2022/23 is lowered 1.2 million bales to just over 120 million bales with a marked decline in the U.S. crop and a slight decline for Brazil, the U.S. Department of Agriculture (USDA) said in its latest monthly agriculture supply an demand report.

In its 2022/23 outlook, the USDA said global use is down 1.6 million bales due primarily to declines in
Bangladesh, China, India, and Vietnam, and ending stocks are increased 1.5 million bales. Global trade is
down, with imports and exports decreasing 1.1 million bales each.

For 2021/22, USDA lowered global production by 725,000 bales from last month due primarily to a decline in Brazil. Global use is down 1.9 million bales, and ending stocks are up over 1.0 million bales, it said, while global trade is down with a 1.3-million-bale drop in imports and 1.2-million-bale drop in exports.

“Notable decreases in imports are seen in Bangladesh, China, India, and Vietnam; exports are down from Australia, India, Mali, and the United States,” the report said.

The USDA said global 2012/22 trade and consumption are down once again this month, reflecting recently published trade data and evolving expectations for the rest of the marketing year.

Imports are lowered for the seventh consecutive month and consumption is lowered for the fourth consecutive month, especially for top cotton consumers including China, Pakistan, Vietnam, and Bangladesh. Prospects for the world’s largest importing country, China, have declined notably since the start of the calendar year.

“Lower production, late crops, logistical delays, and stalled negotiations related to late shipments are also impeding global trade. Major exporters including India and Australia are dealing with these issues in the current marketing year, with India production down and therefore having less supplies available to ship, and Australia’s crop being later than expected and delaying shipments,” the report added.

Future cotton lint production and consumption continue to be suppressed by weaker demand for cotton
products. Moving forward, however, global imports are expected to rebound next year owing to an
increase in exportable supplies though use will remain flat, it said.

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