USDA Announces Global Cotton Forecast For 10/11

In January 12th,

The US supply and demand data adjustment is basically small, of which 11 thousand tons of output were increased, mainly due to the increase in production in California and Georgia, the 11 thousand to 784 thousand tonnes of factory cotton output, and no adjustment in export volume and final inventory.

The global reduction in initial stock and output has increased consumption, resulting in a 120 thousand tonnes drop in final inventory.

China's production and demand data have not been adjusted. The reduction in production in Brazil and Turkmenistan basically offset the increase in the output of Syria and other countries, and the consumption in India has greatly increased.

The US Department of Agriculture said in its January monthly report that although cotton harvest time varies across the world, processing and shipping must meet the requirements of textile mills everywhere, because textile mills need stable cotton supply.

However, in the 8-10 months of 2010, when the new cotton in the northern hemisphere had not yet been harvested, the global supply of cotton was significantly reduced.

Affected by this, the global initial inventory this year has to make up for the supply of cotton during the pition period.

As cotton gets harvested this year, the dependence of textile mills on inventory in the previous year is gradually decreasing, and inventory level will also gradually increase.

In a recent inventory analysis report, analysts from the US Department of agriculture predict that by the end of this year, the global total of 9 million 250 thousand tons of cotton inventory will be needed to meet the needs of textile mills.

Over time, this figure needs to be dynamically adjusted.

For the published USDA supply and demand report, an industry survey shows that most investors believe that the US cotton end inventory will be adjusted slightly, but the adjustment of production and demand balance outside the United States is not as good as expected, including China's cotton production, India cotton export volume and Australian cotton harvest.

According to the insiders, it is a matter of time before USDA adjusts the output of India cotton and the output of cotton in the province. Even if this time is not adjusted, the probability of adjustment in February will be great.

On the whole, the US Department of Agriculture reported that the cotton is still good for cotton, but the extent of the good is not as good as it was expected. China's output has not been adjusted. The ICE American cotton from the highest level of 1.5225 to the closing 1.4797 of the night shows that the good news of the report has been eliminated by the market.