The latest U.S. cotton estimates for 2024/25 indicate a significant reduction in acreage, production, exports, and ending stocks compared to last month’s forecast.
Key Points,
U.S. cotton production for 2024/25 is forecasted at 15.1 million bales, down 1.9 million from last month’s estimate.
U.S. cotton exports are projected to decline by 1 million bales, with ending stocks reduced to 4.5 million bales.
Global cotton production is lowered by 2.6 million bales, with world-ending stocks reduced by 5.0 million bales to 77.6 million.
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The U.S. cotton production forecast for 2024/25 is significantly reduced to 15.1 million bales, reflecting lower planted acreage and higher abandonment rates. Harvested area is now expected to be 8.6 million acres, down 11% from the previous estimate, with a slight decrease in yield to 840 pounds per acre.
U.S. cotton exports are projected to decrease by 1 million bales due to the smaller crop and lower global trade activity. Ending stocks are also reduced by 800,000 bales, bringing the total to 4.5 million bales, or 32% of total use. This reduction is primarily a result of the decreased production.
The global cotton balance sheet for 2024/25 shows reductions in production, consumption, beginning and ending stocks, and world trade. Global production is down by 2.6 million bales, with significant declines in the U.S. and India. Global ending stocks are lowered by 5.0 million bales to 77.6 million, reflecting tighter global supplies.
The U.S. season average upland farm price is revised down by 2 cents to 66 cents per pound, while the global “A” Index, a proxy for world cotton prices, is also reduced by 2 cents to 81.5 cents per pound.
Hedgify’s platform helps businesses navigate the cotton market’s volatility by locking in prices and managing risks associated with reduced production and tighter global supplies.
The information provided in this market insight is for general informational purposes and should not be considered financial advice. It is not intended to offer any financial recommendations or endorsements. Any decisions made based on the content are the sole responsibility of the reader.
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