11
Feb
COTTON estimates for 2019/20 are unchanged, except for a 1 cent-per pound reduction in the season-average upland farm price, to 62 cents, 8.3 cents lower than in 2018/19. Globally, the 2019/20 world cotton ending stocks forecasts is bumped higher by +2.5-million-bales driven by both larger production and lower consumption. A 1-million-bale decline in China’s expected consumption is the largest single change this month: consumption is lower despite the positive impact of the U.S.-China trade agreement, due in part to the negative economic effects of the novel coronavirus outbreak. Production in Brazil in 2018/19 is revised upward by +480,000 bales reflecting higher production in Mato Grosso. Pakistan, Brazil, and Tanzania production in 2019/20 is revised upward. Total production changes this month come to a 1.3-million-bale global increase, while total consumption changes net to a 1.2-million-bale reduction.