USDA Cotton Supply And Demand Report In July 2016

On July 12, the U.S. Department of Agriculture released the cotton In the monthly report of supply and demand forecast, the global cotton production in 2015/16 and 2016/17 was reduced, and the consumption was significantly increased stock Both are down.

The global opening inventory in 2016/17 decreased by 394000 tons, mainly because China's consumption in 2015/16 increased by 327000 tons. The recent strong demand of enterprises for national storage cotton shows that Spinning mill The consumption of is higher than the previous estimate. China's consumption in 2016/17 also increased.

The global cotton output in 2016/17 decreased by 135000 tons. Although the output of the United States is expected to increase, the output of Pakistan and India will decrease. Production in Australia also increased, but declined in Greece and Uzbekistan. The decrease of foreign cotton production will increase imports and reduce exports, especially to Pakistan.

The global cotton ending inventory is expected to be 19.876 million tons, 1.956 million tons less than the beginning level.

For the United States, the report increased the output and export volume in 2016/17, and the beginning and ending inventory decreased compared with the previous month.

According to the planting area report on June 30, the appropriate yield rejection rate and the high yield per unit area, the total output is expected to increase by 218000 tons over the previous month.

The textile consumption has not changed, but the export volume has increased significantly due to the increase of supply and the continuous tightening of international stocks.

It is expected that the average annual sales price for producers will be between 52-66 cents per pound, with the lower limit raised by 5 cents and the upper limit lowered by 1 cent. The average value is 59 cents per pound, up by 2 cents from the previous month.