The US Department of Agriculture (USDA) expects US exports of cotton to rise in February mainly due to an increase in projected imports by China. Increases in China's production and imports are raising the expected concentration of stocks there. China has increased its imports by 1.5m bales to 14m.
The USDA said estimated US exports are seen up slightly at 12.5m bales, with ending stocks forecast at 4.5m bales, mainly due to the increased China imports. Cotton prices are also rising, with producers expected to receive 69-73 cents per pound, rising 3 cents on the lower end, and 2 cents on the upper end of the range, "reflecting a sharp increase on the price received for December".
World production is estimated to be marginally higher, as increases for China and Kazakhstan are mostly offset by decreases in Pakistan and Turkey. World consumption also increased marginally, reflecting increases for Turkey and others. Exports are raised for the United States, Australia, Brazil, Uzbekistan, the African Franc Zone, and Greece.
(Source: www.just-style.com)