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Global Cotton Conclave 2018

World cotton projections anticipate that consumption will exceed production, bringing world stocks down by 6 million bales, more than offsetting 2017/18’s 900,000-bale increase. World cotton production is expected to fall 3.6 percent with yields declining in some countries and area falling in a number of producing countries. Global consumption is expected to continue growing, but at a more moderate pace. It is expected that China will continue to pursue policies limiting imports in order to dispose of surplus government-held stocks. The A Index is forecast to decline about 10 cents to 73 cents per pound due to projected higher stocks outside of China. U.S. 2018/19 cotton production is expected to fall to 19.5 million bales, based on a 5.5-percent increase in planted area, offset by higher abandonment and lower yields. Domestic mill use is projected marginally above the 2017/18 level, and exports are expected to rise, but ending stocks are expected to remain unchanged. read more....

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