Cotton Highlights from May WASDE Report

Cotton Highlights from May WASDE Report

USDA has released its May 2022 World Agricultural Supply and Demand Estimates (WASDE) report. Here’s this month’s summary for cotton:

Despite an expected 1-million-acre year-to-year increase in U.S. area planted to cotton, the U.S. cotton projections for 2022/23 include a smaller crop as abandonment is projected to more than double.

Production is forecast at 16.5 million bales, based on 12.2 million planted acres as indicated in the March Prospective Plantings, but harvested area is expected to fall 1.1 million acres to 9.1 million as limited precipitation in the Southwest suggests more abandonment compared with 2021/22’s below-average level. With a higher national yield, production is forecast about 1 million bales lower. With a larger carry in, supplies are projected slightly lower. Exports are also expected to fall slightly, to 14.5 million bales, as the U.S. share of world trade declines. At 2.9 million bales, 2022/23 U.S. ending stocks are projected 500,000 bales lower than the year before, and equivalent to 17% of total use. The marketing year average upland farm price is projected at 90 cents per pound, down slightly from the previous year’s record high.

For 2021/22, U.S. cotton production is reduced about 100,000 bales from last month to 17.5 million bales. Exports and consumption are unchanged, and ending stocks are estimated 100,000 bales lower, at 3.4 million. The projected season-average price is 1 cent higher than in April, at 92 cents per pound.

Global supplies in 2022/23 are projected below a year earlier, as lower beginning stocks more than offset a 2.6-million-bale increase in production, with consumption and ending stocks also lower. Increased area is expected to drive production higher, with a 2-million-bale increase expected in India’s crop, 500,000-bale gains expected in China and Turkey, and smaller increases forecast for Uzbekistan, Pakistan, and Mexico.

World consumption in 2022/23 is projected to fall 1 million bales from the year before to 122 million bales, with cotton prices currently the highest since 2011 and the highest ever relative to polyester. World ending stocks are expected to fall 1% from the year before, to 82.8 million bales. World trade is expected to rise 2 million bales as China’s imports partly rebound.

The global 2021/22 estimates show lower production and use compared with the previous month. India’s crop is reduced 1 million bales as late-season marketings fell, accounting for much of the 1.8- million-bale global decrease. Projected world consumption is down 1.1 million bales from April as China’s forecast is reduced 500,000 bales and historical revisions to Uzbekistan’s balance sheet reduced estimated consumption there 500,000 bales. Ending stocks are slightly lower as well, down 270,000 bales to 83.6 million.


Source: Cotton Grower
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