According to the report of US Department of Agriculture (USDA), world’s cotton production was projected at 119.79 million bales and consumption at 118.61 million bales in December 2025. The forecast for China’s cotton crop is raised 1 million bales which is more than offset by reductions for India, the United States, Argentina, and Turkiye, resulting in a reduction of over 350,000 bales to world cotton production.
Global cotton fundamentals tightened in the January WASDE as lower production and higher consumption cut world ending stocks and pushed the stocks-to-use ratio below 63 per cent.
China drove both output and demand gains, while reductions in India, the US and Turkiye lowered global supply.
US stocks fell to 4.2 million bales, supporting firmer price expectations.
Global cotton consumption is raised by over 300,000 bales, as an increase for China is partially offset by reductions for Turkiye and Nicaragua. Cotton trade is raised by a negligible amount as higher imports by India are largely offset by reductions for Turkiye and Nicaragua. Cotton imports to rise to 43.76 million bales against 43.73 million bales of the last month.
Global 2025-26 ending stocks are revised downward by 1.5 million bales to 74.48 million bales from 75.97 million bales of December 2025. Lower ending stocks were projected due to lower production, higher consumption, and reductions to India’s 2024-25 production and ending stock estimates. As a result, the global stocks-to-use ratio is reduced to below 63 per cent.
The 2025-26 US cotton balance sheet for January shows lower production and ending stocks compared to December 2025. Beginning stocks, consumption, exports, and imports are unchanged. Production is reduced by over 2 per cent from last month to 13.9 million bales primarily because of lower production across the Delta.
The US’ national average yield declined by 8 per cent from last month to 856 pounds per acre as a result of lower yields in the Delta and larger harvested area in the Southwest. With the smaller crop, ending stocks are reduced by 7 per cent to 4.2 million bales, or 30.4 per cent of disappearance (total demand). The projected season average farm price is raised to 61 cents per pound.
Fibre2Fashion News Desk (KUL)
