ICAC - Executive Summary
Stocks Swell after Production
Exceeds Demand for Second Straight Year
Date Posted: 3 September 2019
Highlights from the September 2019 Cotton This Month include:
Stocks Swell after Production Exceeds Demand for Second Straight Year
According to the September 2019 edition of Cotton This Month, the outlook for 2019/20 is already facing some deflating news: production will surpass consumption, and global stocks are projected to grow to 18.3 million tonnes. That combination will exert downward prices on prices in the coming year.
About 43% of the expected global production of 26.9 million tonnes will come from China and India alone, and the competition between the two to be the year’s top producer should be close. Despite ongoing trade barriers, area in the USA is expected to increase 24% and production is expected to climb by 23%.
US exports, weakened by the trade impasse with China, fell by 8% to 3.16 million tonnes in 2018/19, although the current forecast calls for the global cotton trade to expand 2% to 9.5 million tonnes in the coming year