According to the July global production demand forecast released by the U.S. Department of Agriculture, U.S. cotton production, exports and ending stocks will increase in 2021/22. Although the actual sown area on June 30 was 300,000 acres less than the intended area, the cotton abandonment rate dropped significantly after the rains in Texas, and the harvested area is expected to increase by 9% year-on-year. Affected by this, US cotton production increased by 800,000 bales month-on-month. There was no change in U.S. cotton consumption, while exports and ending stocks both increased by 400,000 bales. The average farm price of upland cotton in the United States is 75 cents/pound, unchanged from the previous month. The average farm price of upland cotton in 2020/21 is 66.5 cents/pound, down 0.5 cents from the previous month.
In 2021/22, global cotton ending stocks were reduced by 1.6 million bales from the previous month, and changes in production and consumption basically offset each other. The global opening forecast for 2021/22 is reduced by 1.5 million bales from the previous month, mainly due to reductions in production in Brazil and India in 2020/21, while consumption in India is increased. Global cotton production increased by 500,000 bales month-on-month, and the increase in U.S. cotton production completely offset the decrease in Pakistan’s production. Global cotton consumption increased by 600,000 bales month-on-month, with the main increase coming from India. Global cotton imports were reduced by 670,000 bales, China’s imports were reduced by 1 million bales, and Brazil’s exports were reduced by 1.1 million bales.
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