USDA's July Cotton Supply And Demand Report Lowers Production And Consumption

July 12th us Ministry of Agriculture Released worldwide cotton Supply and demand forecast monthly report compared with last month, this report raised the initial inventory in 2011/12, and lowered it. yield and consumption Quantity.

At the beginning of the year, stocks were mainly raised in the US and India, and the US cotton was downgraded. yield Partly offset by the increase in Australia; the global cotton consumption is nearly 2% below the previous month, which is mainly due to the decrease in the proportion of excess yarn stock and chemical fiber substitutes in textiles, which is smaller than expected.

Global imports have declined in several countries due to weak demand growth, with China contributing more than half.

Exports from the US, Brazil and Australia have declined, while India cotton exports have increased. Global end stocks rose nearly 6% to 11 million 104 thousand tons. The inventory consumption ratio is expected to be 44%, reflecting the easing of tensions in the last three years, but still the third lowest since 1994/95.

Despite the sharp reduction in US cotton output in the year 2011/12, due to undesirable weather, the end inventory is still rising.

At the beginning of the year, the stock was increased by 109 thousand tons, due to the continuous cancellation of export contracts and the slow progress of shipment in the late 2010/11. Production in 2011/12 decreased by 218 thousand tonnes last month, to 3 million 484 thousand tons, even though the cotton area in the June acreage area expanded. Due to a rare drought in history, the rate of abandoned cultivation is expected to reach a record 30%, mainly in Texas.

The amount of cotton used in the United States has not changed. Export volume fell by 218 thousand tons, to 2 million 610 thousand tons, due to the decline in US cotton supply and weaker foreign demand. Ending inventory increased to 650 thousand tons. The inventory consumption ratio is 19%, although it is higher than last month's data, it is still relatively tight. The average annual price range for producers is expected to be 90-110 cents / pound, with the upper and lower limit falling by 5 cents respectively.