COTTON: The 2015/16 U.S. cotton forecasts include marginally lower production and ending stocks relative to last month, with prices reduced sharply. Production is lowered 90,000 bales.
Domestic mill use and exports are unchanged. Ending stocks are now projected at 3.1 million bales, or 22 percent of total use. The marketing year average price received by producers is projected to range from 54 to 64 cents per pound. The mid-point of 59 cents per pound is reduced 3 cents from last month, as relatively weak global demand for yarn and lower prices for polyester are pressuring world cotton prices.
The 2015/16 world cotton forecasts show higher beginning stocks, lower production and consumption, and higher ending stocks relative to last month. Beginning stocks are raised about 900,000 bales, due mainly to a reduction in China’s 2014/15 consumption, which reflects indications of net cotton textile exports that are lower than previously expected. Production for 2015/16 is reduced for China, Pakistan, and Brazil, but is raised for Mali. Consumption is reduced mainly in China, Pakistan, and India. With world trade virtually unchanged from last month, global stocks are now projected at 107 million bales.