Cotton exports to the Middle East and Asia have catapulted the 2016-2017 marketing year ahead by 70 percent over than the year prior, according to the latest USDA “Cotton: Markets and Trade” report.
U.S. cotton exports for the 2016-2017 marketing year are running more than 70 percent ahead of levels seen the year prior, according to the U. S. Department of Agriculture’s (USDA) “Cotton: World Markets and Trade” report.
The USDA forecasted 14.5 million bales for the year and the current levels shown in the report are keeping the forecast on track. The increase in exports represents a large increase in the U.S. market share of Turkey’s imports, said the report.
Globally, U.S. exports show an improved market share. Vietnam is likely to remain the largest market for U.S. cotton, with shipments up 70 percent to 2.5 million bales, according to the report. Import demand continues to expand as Vietnam’s mill use has supported strong sales this year, the report said.
Shipments almost tripled to China, India, Indonesia and Pakistan, with China seeing a 200 percent increase to about 2 million bales. It may become the second largest U.S. market after being in fifth place in 2015-2016, said the report.
Among the top ten market, Mexico and Turkey have not exhibited rapid growth. India shows the highest global productions with higher beginning stocks and higher consumption, said the report.
World cotton production is expected to grow 7 percent to 24.6 million tons in 2017-2018, according to the International Cotton Advisory Council forecast. Production in the U.S. is forecast to increase 12 percent or 4.2 million tons – the largest volume since 2007-2008, said the report.
Source: http://americanshipper.com