The world cotton ending stocks for 2019-20 are projected at 77.3 million bales for 2019-20, marginally below 2018-19 but 29.5 million bales below the record set just 5 years ago. This would be the lowest since 2011-12, according to the latest US department of agriculture (USDA) cotton projections. China will hold 41 per cent of total cotton stocks. “World stocks totalled 106.7 million bales at the end of 2014-15, with China accounting for 62 per cent of the total. Government policies in China resulted in surplus stock accumulations in their national reserve, but subsequent policies reduced these supplies and have led to lower global stocks,” USDA said in its ‘Cotton and Wool Outlook’ report. For 2019-20, cotton stocks in China are forecast lower at 31.5 million bales, which would be 41 per cent of the world total. Outside of China, cotton stocks are expected to rise 6 per cent to nearly 46 million bales, with stock increases in Brazil and the United States largely accounting for the gain. For Brazil, stocks are projected to reach a record 12.5 million bales (16 per cent of the total) in 2019-20, resulting from an estimated record crop for 2018-19 and another large crop projected for 2019-20. For the United States, cotton stocks are forecast at 6.4 million bales, the highest since 2007-08.
