As per USDA’s World Agricultural Supply and Demand Estimates (WASDE) report for March 2021, US cotton forecasts indicate lower production, consumption and ending stocks relative to February. Cotton production declined by 250,000 bales to 14.7 million due to the industry’s slow recovery from last year’s sharp losses. Ending stocks are 100,000 bales lower this month at 4.2 million bales while the projected marketing year average price received by upland producers has increased by 1 per cent to 69.0 cents per pound.

Though production and ending stocks have declined compared to last month, mill use and trade has increased. Global production has reduced by 830,000 bale due to a decline in the Brazilian and US production. The pace of Cotton imports and signs of recovering global consumption have helped boost consumption estimates for Turkey, Bangladesh, Pakistan and Vietnam. Imports are also projected to increase in countries with larger consumption with the world trade likely to increase by 600,000 bales this month.