Global Cotton Production Decline Puts Pressure on Stocks

The United States Department of Agriculture (USDA) reduced projections for global cotton production in the 2025/26 crop year. According to the supply and demand report released last Thursday (12), the estimate dropped to 25.47 million tons, a decrease of 0.70% compared to the May assessment and 2.45% compared to the 2024/25 crop year. According to the weekly analysis by the Mato Grosso Institute of Agricultural Economics (Imea), the decline was mainly driven by reductions of 5.45% in Pakistan's production and 4.08% in India, compared to May data. The USDA also revised downward the global fiber consumption forecast. The new projection is 25.64 million tons, a reduction of 0.27% from the previous report. Despite the drop in demand, consumption remains higher than production, which directly impacted final stocks. The report ...