cotton futures news

cotton futures news

October 18th, 2018
The USDA World Agricultural Supply and Demand Estimates for October contained a couple of surprises. The revisions of the 2018/19 world cotton numbers included a large — and long-awaited — revision to India’s historical balance sheets covering 2002-2013 crops.

For the 2018/19 balance sheet, this was reflected by a 2.9 million-bale month-over-month reduction to Indian carry-in stocks. This cut went straight to the bottom line, reducing Indian and foreign ending stocks. World production was cut 310,000 bales, mainly from a half-million bale reduction in Australia that outweighed smaller increases elsewhere. World consumption was reduced by 180,000 bales, mainly in Turkey.

The bottom line of all these adjustments was a fundamentally bullish 3.01 million bale reduction in world ending stocks, month-over-month.

The October revisions to 2018/19 U.S. cotton involved another surprising, albeit small, increase in U.S. supply. This adjustment was attributed to production increases in Texas and Georgia (pre-Hurricane Michael) that outweighed post-Hurricane Florence reductions in the Carolinas. U.S. 2018/19 exports were reduced by 200,000 bales to reflect lower world trade and consumption.

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cotton futures news

cotton futures news

August 2nd, 2016

The International Cotton Advisory Committee joined the round of deep cuts to estimates for world cotton stocks, citing improved expectations for Chinese demand, following well-received auction sales.

The intergovernmental group cut by 840,000 tonnes, to a four-year low of 18.63m tonnes, its forecast for world cotton inventories at the close of 2016-17, which began on Monday.

The revision is the latest in a series of downgrades by leading commentators on stocks expectations, with the US Department of Agriculture last month cutting its forecast for carryout inventories in the new season by 750,000 tonnes to 19.88m tonnes.

Cotlook has raised from 966,000 tonnes to 1.3m tonnes its forecast for the world cotton production deficit in 2016-17.

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