USDA China imports 1.5 million packs of cotton


According to the US Department of Agriculture's March supply and demand report, the US cotton supply and demand adjustment for the 2011/12 season includes textile mill usage and ending stocks. The use of textile mills is expected to be reduced by 100,000 bales from the previous month, reflecting the operation of textile mills so far this year. At the beginning of the year, inventory, production, and exports were not adjusted. Therefore, ending stocks increased to 3.9 million bales. The average price received by growers is expected to be between 88-93 cents/pound and one cent at the low end.

In 2011/12, the world cotton supply and demand forecast, cotton supply increase, and consumption decrease. Therefore, the global ending inventory is expected to increase by nearly 1.6 million. The main stocks raised at the beginning of the year were Brazil and Egypt. The output was raised by Brazil and Pakistan, but Australia's production was lowered. Cotton consumption in China, Brazil, Egypt and other countries is expected to be reduced, but South Korea's consumption is expected to increase. World trade is expected to increase by nearly 4% over the previous month because the Indian government reported that the volume of exports so far this year has risen sharply from previous estimates. The export of India is expected to be revised to 7.75 million bales. Assuming that the ban was announced on March 5, 2012, India will no longer export cotton. World imports are expected to increase by 1.35 million bales, mainly because China’s imports have increased by 1.5 million bales, and nearly 40% of China’s cotton production has been collected and stored by the government. Based on these adjustments, China's ending stocks are now expected to slightly exceed 20 million bales.