World Cotton Stocks Are Expected to Rise for The Fifth Consecutive Season

The latest U.S. Department of Agriculture (USDA) projections for 2014/15 indicate that world cotton stocks are expected to rise for the fifth consecutive season. Global ending stocks are now projected at a record 102.7 million bales for 2014/15, nearly 4 percent (or 3.7 million bales) above 2013/14.

World cotton stocks have increased considerably over the past several seasons as relatively high cotton prices boosted global production but simultaneously limited growth in cotton mill use.

The rise in global stocks has largely occurred in China due to government policies that included national reserve purchases; these policies supported global cotton prices by effectively keeping supplies out of the marketplace.

Stocks in China at the end of 2013/14 are estimated at 60.3 million bales, or 61 percent of global stocks. While there have been policy adjustments in China, stocks are forecast to remain about unchanged in 2014/15 at 60.8 million bales, accounting for 59 percent of world stocks.