USDA WASDE Report Summary:
BEGINING STOCKS:
Last Month Ending Stocks: 93.16 Million Bales
This Month Ending Stocks: 93.05 Million Bales
Decrease: 0.11 Million Bales
ENDING STOCKS:
Last Month Ending Stocks: 90.99 Million Bales
This Month Ending Stocks: 89.30 Million Bales
Decrease: 1.69 Million Bales
WORLD PRODUCTION:
World Estimated Production in Last Month: 119.44 Million Bales
World Estimated Production In Current Month: 118.87 Million Bales
Decrease : 0.57 Million Bales
WORLD CONSUMPTION:
World Consumption Estimate in Last Month: 121.48 Million Bales
World Consumption Estimate in Current Month: 122.54 Million Bales
Increase : 1.06 Million Bales
DEMAND AND SUPPLY DIFFERENCE:
Global Supply: 118.87 Million Bales
Global Consumption: 122.54 Million Bales
Shortage : 3.67 Million Bales
(Last month Demand and supply Gap was 2.04)
USA Cotton Estimated Production Last Month: 17.00 Million Bales
USA Cotton Estimated Production This Month: 17.00 Million Bales
Looking at the above figures it is still expected that prices will remain firm and during the upcoming season. Last month supply and demand estimate was around 2.04 million bales of 480 Lbs but current month supply and demand gap is around 3.67 million bales.
We may see more corrections in cotton production estimates in next few WASDE reports and cotton prices will remain firm and upward. Pakistan local cotton prices started with a historic high level and Indian local prices are also above 49,000 / Candy. Indian cotton prices also gained a lot during the last couple of weeks.