Exports Expand in Four of the Top Five Markets
With 2017/18 seeing the largest U.S. production in more than 10 years and record global use, reported U.S. exports reached their highest level since 2005/06 and were the second highest on record. Compared with last year, U.S. shipments expanded in four of the top five markets. Expanding use in Southeast and South Asia has underpinned significant U.S. shipments recently. Vietnam continued for the third year as the top U.S. market where shipments surpassed last year’s record, owing to the country’s record yarn production and robust yarn exports (see last month’s report here).
China was the second-largest destination for U.S. cotton and served as the largest market for U.S. Pima (Extra-Long Staple grade). Demand for Pima and Upland continues to grow as China pursues higher quality inputs and works domestic stocks down further.
U.S. exports to Pakistan saw the largest year- over-year increase despite its larger domestic crop. The country’s yarn production continues to grow and is expected to expand into 2018/19, a promising sign for U.S. export prospects.
Shipments to Mexico and Turkey were down compared to the previous year, due to higher production in those countries.
U.S. exports are forecast down slightly in 2018/19, with exportable supplies lower in the United States and higher for the rest of the world excluding China. Nonetheless, 2018/19 U.S. shipments are forecast to be the second-highest since 2005/06 with global use projected at a record.
Read the full USDA Cotton: World Markets and Trade report.