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The U.S. cotton balance sheet for 2024/25 shows an increase in production and ending stocks, while exports, imports, and domestic use remain unchanged. The national cotton yield is projected to rise to 792 pounds per harvested acre, with regional yield variations. U.S. ending stocks are raised to 4.4 million bales, resulting in a stocks-to-use ratio near 34%. The world cotton balance sheet sees a rise in production, consumption, and ending stocks, with global production increased to 117.4 million bales. India’s production boost plays a major role in this global rise, while world exports show marginal growth.

Key Highlights

* U.S. cotton production revised up to 14.3 million bales.

* National cotton yield forecast increased to 792 pounds per acre.

* Ending stocks raised to 4.4 million bales, 34% stocks-to-use ratio.

* World cotton production up by 1.2 million bales to 117.4 million.

* U.S. cotton farm price remains unchanged at 66 cents per pound.

The 2024/25 U.S. cotton balance sheet shows a positive shift with higher production estimates. U.S. all-cotton production is now projected at nearly 14.3 million bales, an increase of 64,000 bales from the previous month. The national yield has been raised to 792 pounds per harvested acre, driven by better-than-expected yields in the Southeast and Delta regions. As a result, ending stocks are revised upwards to 4.4 million bales, maintaining a healthy stocks-to-use ratio of 34%.

In terms of price performance, the 2024/25 season average upland farm price remains stable at 66 cents per pound, with no changes to the previous month's projections. While cotton production sees a rise, factors like weather conditions and regional yield disparities may influence the broader price trend.

On the global front, the 2024/25 world cotton balance sheet shows an increase in production, consumption, and ending stocks. The global cotton production forecast now stands at 117.4 million bales, driven by a significant boost from India’s crop. Exports are marginally higher, with notable increases from Brazil, Benin, and Senegal, although reductions are observed in countries like Burkina Faso and Mali. Overall, the global cotton market remains resilient, with consumption rises in key markets like India and Pakistan.

Finally

U.S. cotton production growth and global supply increases reflect a stable outlook for the cotton market, with steady prices expected.

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