World cotton ending stocks are expected to decline in 2010/11

Business News Agency April 12th According to the forecast of the world's agricultural supply demand released by the U.S. Department of Agriculture, world cotton inventories are forecast at 41.55 million bales (480 pounds per bag) in 2010/11, a decrease of 780,000 from the March report. package. Taking into account the ending stocks in 2008/09, the world's cotton stocks will be reduced by 18.97 million bales because the 2008/09 ending inventory is 60.52 million bales.

The total world cotton supply in 2010/11 is estimated to be 19665 million bales. The total usage is expected to be 1.5525 million bags. U.S. cotton supply is expected to reach 21 million bales, of which output is estimated at 18 million bales. U.S. production decreased by 220,000 bales from the March report. U.S. cotton consumption increased 100,000 bales from the previous month. China's domestic cotton consumption is expected to reach 47 million bales, which is in line with the March report.

According to US Department of Agriculture estimates, Indian textile mills are expected to consume 21.5 million bales of cotton (480 pounds per bag). India’s current annual export is expected to be 4.8 million bales. Production is expected to reach 25 million bales (480 pounds per bag), maintaining the March report projections. This year, India’s ending stocks are expected to be 5.35 million bales, down from the 170,000 bales reported in March.

As a result, India’s ending stocks are 6.85 million bales (170 pounds per bag). This year, the ending stocks in India were lower than the final inventory of 9.93 million bales (170 pounds per bag) in 2009/10. According to the latest estimates, India's inventory at the beginning of the year in this year's market was lower than the March 2011 report.

American industry sources said it is hard to believe that in 2008 the United States had inventories of 10 million bales at the beginning of the year, and in just three years, the demand for US cotton had shrunk by more than 85%.

Inventories at the beginning of 2008 were 1.6 million bales. The demand for US cotton in the year exceeded the 4 million bales of new cotton production. Demand in 2009 is still greater than output. In the 2010 US cotton sales year that began on August 1, 2010, there were only 2.95 million bales at the beginning of the year.

This year, US cotton demand once again exceeded production in 2010, although US cotton production increased significantly. As the world needs more cotton in 2011, the supply of cotton worldwide will continue to be tight. Developing economies such as China, India, Vietnam and Bangladesh are all striving to meet cotton demand.