A sharper-than-expected drop in production in China will increase an anticipated drawdown in global cotton inventories in the 2015/16 season, analysts Cotton Outlook (Cotlook) said in a report on Monday. Cotlook forecast cotton inventories would fall by 971,000 tonnes in the 2015/16 season, up from a projection of 768,000 tonnes issued a month ago.
China's production outlook for the 2015/16 season was cut by 370,000 tonnes to 5.01 million tonnes, down sharply from the prior season's 6.29 million. Cotlook cut its forecast for global production in 2015/16 by 555,000 tonnes to 22.42 million and down from the previous season's 25.48 million. Global consumption in 2015/16 was cut by 352,000 tonnes to 23.39 million tonnes and is now expected to be below the prior season's 23.56 million.