USDA Data: Global Cotton Market And Trade Analysis

Global cotton consumption is expected to decline by 3.3 million bales to 111.7 million bales this month. The decline in supply, the decline in the profit margin of spinning mills, the decline in yarn orders from fabric and clothing companies, and the rise in inflation have all brought pressure on consumption.

The major challenges faced by China, India and Pakistan, the three largest consumers, are expected to make the global consumption level significantly lower than that in the previous two years. India's consumption this month is expected to decline by 1 million bales to 23 million bales, down more than 2 million bales from the previous year, the largest year-on-year decline for all cotton consumers. The sharp decline in initial inventory, the decline in exports of textiles (yarn and fabric) and cotton products, and the decline in price competitiveness of yarn exports have put pressure on consumption prospects. The rise in spot prices relative to other major spinners has weakened India's position as a Chinese yarn exporter. See last month's "China" version of the slow yarn import signal slow global cotton consumption for more information.

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