Cotlook discarded anticipation of a further fall in world cotton inventories next season, quoting the prospects of a strong US harvest. Starting in August Cotlook forecast a rise of 44000 tonnes in world inventories of the fibre in 2017-18.The estimate contrasted with a previous expectation of a small decrease in stocks, of 47,000 tonnes. And it placed Cotlook at chances with an idea from the US Department of Agriculture of a 520000-tonne decreased in world cotton stocks next season.

On the other hand the International Cotton Advisory Committee estimates to fall by 960000-tonne.

Talking about the firm prices Cotlook's raised inventory estimate reflected an increased forecast for world production, upgraded by 91000 tonnes to 24.5 million tonnes, to improved ideas for the US harvest. Cotlook also stood by expecting for output in top grower Indian, seeing the country's harvest at 6.29 million tonnes, ahead of the USDA's 6.10 million tonne figure, and a forecast from the ICAC below 6 million tonnes.

According to the group the Global raw cotton production may rise by 1.78 million tonnes, which has increased to 4.18m tonnes its forecast for the US crop, putting its figure in line with that of the US Department of Agriculture. The group also highlighted a "difference" in inventory moves, with China's stocks seen dropping by nearly 2m tonnes over 2017-18, as the country extends a sell-down of government inventories swollen by a now-reformed guaranteed pricing scheme for growers. In the rest of the world, "an addition of similar magnitude is foreseen" cotton in inventories.