Cotton Output In The US May Drop Sharply

The latest cotton monthly forecast report of the US Department of agriculture (USDA) shows the new year of the United States. cotton Output may drop sharply, resulting in a decrease in export volume and a slight decrease in end inventory.

The focus of the market will be on the growth of new cotton in the northern hemisphere, China's demand for cotton and cotton production in India.

Due to the shortage of cotton import quota in China, the competition in the upstream and downstream yarn market is fierce, and the competitiveness of domestic yarn is weak. Therefore, the demand for cotton in China is overestimated, and the US cotton export volume is less than the predicted 2 million 570 thousand tons, and the expected export volume in the future market may be reduced.

Due to the continuous drought in the cotton producing areas of the United States, and the sowing area of cotton has been greatly reduced, and the US cotton production is expected to continue to shrink in the next few months, the estimated value of USDA for us cotton production is 3 million 700 thousand tons, which is estimated to be 109 thousand tons lower than the previous month.

In the new year, the end of the US cotton inventory is expected to decrease by 43 thousand tons compared to the previous month, to 1 million tons, while the inventory and consumption ratio will decrease to 30.5% from 32% in the previous month.