Global Cotton Production And Consumption Realized Double Growth In 2016/17

The US Department of agriculture forecast in May that global cotton production and consumption in 2016/17 increased year-on-year.

Forecast shows that 2016/17 Global cotton Output has increased and consumption has increased slowly, but global inventories have declined for second consecutive years and almost all come from China. Next year, the increase in sales and consumption of China's cotton reserves will reduce the final inventory by 6 million 600 thousand bales.

USDA: sale of reserve cotton promotes cotton consumption.

Stocks outside China are expected to increase slightly, changing the current state of tension in other export banks except the US and Australia. Global imports are expected to decline slightly due to the resumption of cotton production in Pakistan and China's continuous digestion of reserve cotton, while imports from major importing countries such as Vietnam and Bangladesh have slowed down.

From the supply side, India, 2016/17, Pakistan The unfavorable growth environment in the southeastern United States will no longer exist. Production in Egypt, Turkmenistan, Turkey and some other countries in West Africa is also expected to increase. Due to the increase in global output, plus China's sales of cotton reserves, the next year's International Cotton price Will be more conducive to the production of textile mills.

Global consumption continues to grow on the basis of continued consumption growth in Vietnam and Bangladesh, and China's consumption is expected to recover.

The ongoing sale of reserve cotton and domestic price support policy will make domestic cotton prices continue to be substantially lower than those of previous years. Meanwhile, slower growth in cotton consumption in other countries is also the inevitable result of accelerated consumption growth in China, especially in the Vietnamese New Year.