USDA: Reduction Of Global Cotton Output, Consumption And Final Inventory Expectations In 2015/16

Global cotton inventory consumption has maintained a high level in recent years, but as the planting area of American cotton and Chinese cotton has begun to decline and supply is decreasing, the global cotton inventory consumption ratio is expected to fall.

In December 10th, the US Department of Agriculture released the global cotton supply and demand monthly report, which once again lowered global cotton production in 2015/16.

And final inventory.

Global cotton production has been cut by 420 thousand tons, mainly in Pakistan, China, the United States, Turkey, Greece and Turkmenistan, though partly offset by the increase in Australia's production.

A slight drop in global cotton consumption reflects mainly the situation in China, India and Pakistan, but most of them are offset by the increase in Vietnam and Bangladesh.

Projected global

The volume of trade will increase by 218 thousand tons, reflecting the increase in imports from Pakistan, Vietnam and Bangladesh, but China

It will decrease.

Exports from India, Brazil and Australia will increase, while the US will decrease.

The end of the world inventory is currently estimated at 22 million 730 thousand tons, down 370 thousand tons from last month.

In the US, compared with last month's data, cotton production and export volume declined slightly in 2015/16, and stocks at the end of the year decreased.

Output is expected to be 2 million 840 thousand tons, down 54 thousand tons from last month, mainly due to the decline in production in southern and North Carolina.

The amount of domestic textile mills remained unchanged, but exports dropped by 44 thousand tons due to reduced supply and slow progress.

The final inventory is 650 thousand tons, accounting for 22% of the total demand.

The average annual selling price of the producer is estimated to be between 56 and 62 cents per pound, and the upper and lower limits are reduced by 1 cents, averaging 59 cents per pound, unchanged from last month.

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In terms of textile exports, according to the latest statistics of the General Administration of Customs of China, in November 2015, the export volume of textiles and clothing was 21 billion 982 million US dollars, down 7.07%, down 9.70% from the same period last year.

Among them, exports of textiles (including textile yarns, fabrics and articles) amounted to US $8 billion 668 million, down 9.20% compared to the same period last year. Exports of garments (including garments and accessories) were US $13 billion 314 million, down 10.03% from the same period last year.

In 2015, the total export volume of textiles and clothing was 257 billion 28 million US dollars in 1-11 months, with a total decrease of 5.77%.

As for the production and sale of gauze, the market of yarn and grey fabric sales continued to be weak in November.

Textile mills have more price promotions, sales increased by 0.6 percentage points compared with October, and sales of grey fabrics decreased by about 2.01 percentage points.

Yarn inventory for 17 days, an increase of 1.29 days from last month, grey cloth inventory 21.2 days, an increase of 0.5 days from last month.

In terms of inventory of domestic textile enterprises, in November, raw material market resources were relatively abundant, and the stock of textile enterprises increased.

The survey shows that textile enterprises in the month increased 29 thousand and 600 tons of cotton stocks in the same period last month.

Of the surveyed enterprises, 34% increased the stock of cotton in the warehouse, and 30% reduced the stock of cotton in the warehouse.

At the end of the month, the end of the replenishment of textile enterprises is coming to an end. Because most enterprises are still short of confidence in the market outlook and remain relatively low disposable cotton stocks, about 70.49% of the surveyed enterprises will maintain their existing stock of raw materials in December.