Raw Materials

2020-03-05

Global stocks expected to drop by 1% in 2019/20 season

(c) 2020 ICAC
For the fifth season in a row, global stocks are expected to drop in 2019/20, decreasing by 1% to 18 million tonnes. The global reduction is completely due to the 5.5% decline in China’s warehouses to 8.4 million tonnes; the rest of the world is expected show an increase of 3% to 9.6 million tonnes.

With global consumption projected to remain steady, the decrease in stocks comes despite an expected 1% increase in global production. India’s crop is expected to jump 12% to 6 million tonnes, with the USA — the world’s largest exporter — posting a 9% gain to 4.4 million tonnes.

The market has already been facing significant uncertainty due to the ongoing trade tensions between the USA and China, so the outbreak of Covid-19 only clouds the outlook further. Combined with the global economic slowdown, these developments have prompted the Secretariat to revise its current price projection to 79 cents per pound.


Cotton This Month is published at the beginning of the month with the Cotton Update published mid-month. The Cotton Update, which is included in the Cotton This Month subscription, is a mid-month report with updated information on supply/demand estimates and prices. The next Cotton Update will be released on 15 April 2020. The next Cotton This Month will be released on 1 April 2020.

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