Global cotton use to exceed production in 2016-17

For the second consecutive season, global cotton consumption will expand slightly and surpass production in 2016-17, according to the initial projections by the US department of agriculture (USDA).

Compared to world cotton production forecast of 104.4 million bales in 2016-17, cotton mill use is projected at 110.8 million bales, the USDA said.

After a slight decrease in 2015-16, world cotton mill use is projected to rebound due to modest growth in global gross domestic product (GDP) and the lagged effect of lower cotton prices.

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China, India, and Pakistan are expected to lead world cotton mill use and account for a combined 62 per cent of the total in 2016-17, similar to 2015-16.

On the production side, a modest increase is expected after a 16 per cent reduction in 2015-16 that resulted from inclement weather and pest damage in a number of producing countries.

Despite reduced global area expectations in 2016-17, a yield rebound is responsible for the crop increase, the USDA said in its initial projections.

India, China, and the United States are expected to account for a combined 63 per cent of global cotton production in 2016-17, compared with 64 per cent in 2015-16.