The 2019/20 U.S. cotton supply and demand projections are unchanged from last month, with the exception of a 1-cent decline in the season-average upland farm price, to 64 cents per pound. The 2018/19 U.S. cotton balance sheet is unchanged.
The world 2019/20 cotton projections include higher beginning stocks, slightly lower production, lower consumption and trade, and higher ending stocks.
Ending stocks for 2019/20 are projected 1.6 million bales higher than in May, due to a 1.1-million-bale increase in beginning stocks and a 660,000-bale decline in consumption. Beginning stocks are higher largely due to larger 2018/19 production in India and lower 2018/19 consumption in China.
World consumption and imports in 2019/20 are projected lower largely due to a 500,000-bale decline in each variable’s forecast for China. Lower exports are expected for Australia due to lower production, but higher expected exports from India are partly offsetting.