Worldwide cotton inventories are heading for a squeeze in the 2026/27 marketing year (August–July), according to the US Department of Agriculture’s (USDA) newest forecasts.
Closing stocks are tipped to shrink by 5.0 million bales of 480 pounds each, year on year, touching a level not seen since 2011/12.
Every leading producer is set to carry smaller reserves, with Australia and Brazil facing the steepest proportional drops.
China, meanwhile, retains the biggest holdings, accounting for close to half of global stocks in recent seasons.
On the supply side, world output is projected to fall by 4.1 million bales, or 3.4%, to 118.0 million bales, the weakest crop since 2023/24.
Demand looks firmer: mill consumption is seen climbing 2.3 million bales to 123.1 million bales. Spinners in each major consuming nation are expected to use more fibre than last season, with Turkey alone showing no change.
Trade volumes are forecast marginally lower at 44.7 million bales, as reduced purchases by India and China outweigh higher buying among the other top importers. Brazil and the US will remain the principal exporters.
Image courtesy: Grain Central
