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The production of cotton worldwide is expected to fall, according to the US Department of Agriculture (USDA). However, this season can see an uptick in product usage. The outcome will be a reduction in supplies. The USDA added that cotton exports may rise on a worldwide scale.
According to analysts, El Nio and global warming are to blame for the warming of the weather. The outcome is a disruption in agricultural product output. Also impacted by this is the cotton industry. Heavy rains or natural calamities have also started to pose a problem for output in some areas.
The USDA stated in a report titled Global Agricultural Supply and Demand Estimates published this month that 116.68 million bales (480 pounds per bale) of cotton might be produced worldwide in the 2023–24 growing season. 117.97 million bales were produced the season before. Market watchers claim that after overcoming Corona's challenges, the main economies, including China, are starting to recover. The clothing market is growing. The demand for garment products may increase this year on a global scale. However, it's uncertain whether there will be enough supply to increase that share.
The USDA stated in the report that this season, as compared to last season, the world may use 116.45 million bales of cotton, up from 109.77 million bales.
The product's stock can reach 93.95 million bales at the start of the season, up from 86.04 million bales the season before. The closing stock, which was 93.95 million bales last year, could instead total 94.52 million bales.
Additionally, the report stated that 37.56 million cotton bales were exported during the 2022–2023 season. The export could reach 43.51 million bales in the 2023–2024 growing season.
One of the world's major producers of cotton is India. The nation's production of the good could drop from 25,50 million bales in the 2023–2024 growing season. India's use of cotton is anticipated to rise to 24.50 million bales. The usage during the 2022–2023 season was 23.50 million bales. According to the USDA, India will export 22 million bales of cotton, up from 12.50 million. Additionally, the stock may total 11.60 million bales at the start of the season.
However, China's production could drop from 30.7 million to 27 million bales. The import of the nation is anticipated to rise from 6.35 million bales to 9.75 million bales. The product could be used up to 14.47 million bales.
Cotton production in the United States may rise from 14.47 million to 16.5 million bales, even if it declines in other nations. The amount of exports from the nation could reach 13.75 million bales.
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