USDA has released its January 2025 World Agricultural Supply and Demand Estimates (WASDE) report. Here’s this month’s summary of the U.S. domestic and global cotton balance sheets.

For the 2024/25 U.S. cotton balance sheet, production and ending stocks are increased while exports are reduced. Domestic use and beginning stocks are unchanged.

The U.S. all-cotton production is revised upward 159,000 bales to 14.4 million as the national all-cotton yield estimate is raised 44 pounds to 836 pounds per harvested acre, reflecting a larger crop and lower harvested area. Most of the reduction in harvested area occurred in the Southwest, while yields in numerous Southeast, Delta, and Southwest states are expected to be higher. Projected exports are lowered 300,000 bales to 11.0 million.

Ending stocks are raised to 4.8 million bales for a stocks-to-use ratio of about 38%. The 2024/25 season average upland farm price is reduced to 65 cents per pound.

Global production, consumption, trade, and ending stocks are raised in the 2024/25 world cotton balance sheet while beginning stocks are unchanged.

World production for 2024/25 is increased just over 2 million bales to 119.4 million – largely the result of a 1.8-million-bale increase for China’s crop. Larger crops are also projected for Australia and the United States, while production in Pakistan is reduced.

World consumption is raised 100,000 bales as increases in Bangladesh and Vietnam more than offset a reduction for Turkey. Projected exports are raised 225,000 bales as increases for Brazil, Australia, and India exceed the reduction for the United States. Ending stocks are increased almost 1.9 million bales as increases in China, the United States, Australia, and India more than offset the reduction for Brazil.