The USDA’s Jun supply and demand report says, global cotton production and ending stocks declined during the 2021/22 season. The association also forecasts a lower consumption for 2022/23 seasons, showing that the high cotton prices restrain the consumption apparently, and later, the consumption is likely to be lowered further. The drought condition in Texas persists, but crop growing development is good, and the expectations of a higher new cotton production maintain.

For 2021/22 season, USDA says, cotton production declined by 220kt from May, and production of Brazilian cotton also declined by 110kt. Meanwhile, consumption declined by 270kt. Overall, the cotton supply remained tight. 2021/22 global ending stocks declined by 150kt from previous month. But recently, new cotton arrived on the Brazilian cotton market, and local cotton prices dipped quickly. In Australia, affected by the rainfall, the harvests delayed in South Wales.

For 2022/23 season, USDA forecasts a slightly lower cotton consumption, to 26.46 million tons, down 30kt from 2021/22 season. Production is slightly higher. Though Texas need more moisture despite of recent rainfall, USDA reports a good development of US cotton planting this year, and it has not anticipated a production reduction.