Non-US 2012/12 cotton ending stocks to be 11% higher

Stocks have risen considerably over the last 2 years as a result of recent record cotton prices that encouraged increased production but reduced demand.  In addition, China’s policies that support domestic prices above world prices have led to significant stock-building.

While foreign cotton ending stocks are expected to rise for the third consecutive season, the stock growth has been extraordinary in China.  In 2010/11, China’s stocks reached a 15-year low of 10.6 million bales and significant rebuilding of the national reserve began. 

By the end of 2012/13, China’s stocks are projected to total nearly 37 million bales, or the equivalent of 12 months of mill use there; China alone will hold half of the foreign cotton stocks, but their availability to the market remain uncertain.   

U.S. Department of Agriculture (USDA)