MUMBAI (Commoditiescontrol) - U.S. cotton production in 2015-16 seen down at 2.8 million tons, as per Cotton Outlook (Cotlook).
However, it projected world cotton consumption to 23.9 million tons, down 305,000 tons from its July forecast. Cotlook lowered its estimate on consumption attributing estimated reduced consumption by India to 9 million tons.
The end result will be a reduction in global inventories of 584,000 tons by the end of the year, smaller than the 597,000 tons reduction it anticipated last month.
The cotton market is suffering from massive global inventories, primarily a result of years of stockpiling in top-consumer China.
Just a week ago, U.S. Department of Agriculture (USDA) reduced its forecast for U.S. production and inventories by the end of the 2015-16 crop year, which began this month, by more than market expectations, contributing to a sharp increase in prices.
(By Commoditiescontrol Bureau; +91-22-40015532)
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