The U.S. cotton 2015/16 supply and demand forecasts show only marginal changes from last month. Production is decreased 73,000 bales to reflect USDA’s March Cotton Ginnings report. Domestic mill use and exports are unchanged. With small adjustments to imports and the “unaccounted” residual, ending stocks are lowered 100,000 bales to 3.5 million. The marketing year average price received by producers is WASDE-552-5 expected to fall between 58.0 and 59.0 cents per pound, a reduction of 1.0 cent at the upper end of the range.
The world cotton 2015/16 supply and demand forecasts include lower estimated beginning stocks and production combined with slightly higher consumption, resulting in a 1.1-million-bale reduction in ending stocks. Beginning stocks are lowered about 300,000 bales, mainly for Greece and Malaysia on historical revisions, partly offset by an increase for Brazil. World production is reduced 400,000 bales, with reductions in Côte d’Ivoire, Mali, and Brazil. Consumption is raised for China and Pakistan, but is lowered for Indonesia, Bangladesh, and Turkey. World stocks are now projected at 102.2 million bales.
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