US cotton tightens, global market up in March WASDE report

The USDA's latest cotton report is a mixed bag. For the US, cotton production and ending stocks are forecast lower due to reduced yields. However, globally, production, consumption, and trade are all expected to be higher.

US cotton production down 334,000 bales to 12.1 million due to lower yields. Ending stocks are down 300,000 bales to 2.5 million, the lowest level since 2020-21. However, prices will producers remain unchanged at 77.0 cents per pound.

Global cotton production is up 130,000 bales, driven by a 500,000-bale increase in India. Consumption is up almost 500,000 bales, led by China and India. Trade is also up 400,000 bales, with China's imports nearly doubling. Global ending stocks are slightly lower at 83.3 million bales. This suggests tighter supplies for US cotton but continued growth in the global market.