Global cotton production is expected to increase by 6.8 %. The rise is aided by increase in the yields as well as the area of cultivation in several countries as stated in projections for 2019-20 season released by the US department of agriculture (USDA). The report forecasts the US production at 22.5 million bales.
Cotton production is expected to exceed beyond consumption by 1 million bales which will result in slightly lower cotton rates for manufacturers all over however this differential will not be evident in all domestic markets as it depends upon import/export policies of the particular country. The report also expands upon the outlook for China which is showing imports, consumption, and production projected up however still stocks are expected to fall. With the decline in China’s stocks, stocks outside of China are projected to increase significantly.
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