The U.S. Department of Agriculture (USDA) estimates that global cotton stocks will reach a record 105.1 million bales in 2014/15, according to the agency’s August Cotton and Wool Outlook report.
The estimate represents a rise in stocks for the fifth consecutive season and a 5.1 million bale increase over stocks at the end of the 2013/14 marketing year.
According to the report, world cotton production continues to decline, but is also projected to exceed rising mill demand as anticipated changes to China’s cotton policies push world prices lower.
The expected growth in global stocks is primarily due to higher stock forecasts in countries outside of China, including the U.S.
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