USDA: World Cotton Consumption To Rise 1.1% In 2016-17

MUMBAI(Commoditiescontrol)- USDA released its monthly World Agricultural Supply Demand Estimate (WASDE) for cotton season 2016-17 (August-July) on February 9, 2017, forecasting consumption to increase 1.1 percent year on year to 1439 lakh bales (170 kg each) or 112.52 million US bales. With 13 per cent lower opening stock and 9 per cent increase in production during the year, ending stock is estimated to fall 7 percent to 1150.00 lakh bales or 89.91 million US bales.

India’s domestic consumption in 2016-17 is expected to increase 6.40 lakh bales (170kg each) at 303.78 lakh bales (170 kg each) or 23.75 million bales (480 lb each) compared to previous estimates.

However, it was lower than the figures of 2015-16 season by 6.40 lakh bales at 310.17 lakh bales or 24.25 million bales (480 lb each).

World production is virtually unchanged from last month, as a higher estimate for China is mostly offset by lower expectations for Pakistan, Uzbekistan, and Turkmenistan. Global consumption is forecast higher, due mainly to increases for India, Bangladesh, and Vietnam. World ending stocks are now projected at 1,150 lakh bales (170 kg each) or 89.9 million bales (480 lb each).

The 2016/17 U.S. cotton supply and demand forecasts show slightly higher exports and lower ending stocks relative to last month. Production and domestic mill use are unchanged. The export forecast is raised 2.56 lakh bales to 162.44 lakh bale (170kg each) or 12.7 million bales (480 lb each) based on strong export sales during January. Ending stocks are now estimated at 61.39 lakh bales (170 kg each) or 4.8 million bales (480 lb each), equivalent to 30 percent of total disappearance. The marketing year average price received by producers is projected to average between 67 and 71 cents per pound, an increase of 2 cents on both ends of the range, as recent market prices have exceeded previous expectations.

Orginal data with figures in million US bales (480 lb each)

NOTE: 3/ Less than 6,000 bales (170 kg each) or 5,000 bales (480 lb each)

(By Commoditiescontrol Bureau; +91-22-40115534)