News

Steady Consumption, Declining
Production Will Draw Down Stocks

For Immediate Release 

Date Posted: 1February 2019

Executive Summary

Highlights from the February edition of Cotton This Month regarding the 2018/19 season:

• World ending stocks are projected to decrease by 5% to 17.6 million tonnes
• China’s production is expected to increase by 1%, bringing its total to 5.94 million tonnes, replacing India as the world’s largest producer
• Global consumption projections remain at 26.8 million tonnes
• Prices are feeling some pressure due to concerns about overall economic growth but should remain steady due to solid fundamentals

Steady Consumption, DecliningProduction Will Draw Down Stocks

By the conclusion of the 2018/19 season, world stocks are projected to drop to 17.6 million tonnes, reflecting a decrease of 5% from the prior year and registering the fourth straight year of decline. Consumption is expected to remain steady but a 3% decline in global production will draw down the world’s warehouses.

Production in China is expected to increase 1% to 5.94 million tonnes, and when combined with a 7% decline in India’s production due to insufficient rainfall, the changes mean China will regain the ‘top producer’ title it lostto Indiain the 2015/16 season.