USDA July Monthly Report: Cotton Consumption Will Decrease At The End Of Next Year.

According to the July Global Forecast of production and demand released by the US Department of agriculture, the US cotton initial inventory and final inventory increase in 2019/20 were raised. At the beginning of the year, the stock was increased by 350 thousand packs due to the reduction in domestic consumption and exports in 2018/19, and the reduction in the amount of cotton used in the United States by 100 thousand packs. The export volume of the US cotton market was reduced by 250 thousand packages in the near future. In the year 2018/19, the end of the year inventory increased by 300 thousand packs to 6 million 700 thousand packages, and the inventory consumption ratio was 33%. The average price of farm rankings this year is 63 cents, down 1 cents, the lowest in nearly four years.


Globally, the 2019/20 global initial inventory increased by 1 million 700 thousand packs, the consumption volume was reduced by 1 million packages, and the final inventory increased by 3 million 200 thousand packs. The increase in initial inventory was due to a decrease in consumption in Bangladesh and China in 2018/19. As consumption in Bangladesh and China offset the increase in consumption in India, Turkmenistan and Vietnam, global consumption in 2019/20 decreased. The global cotton production chain increased by 500 thousand packs in 2018/19 and 2019/20. The main reason for the increase in global output next year is the increase in cotton production in India.