For more information visit our website www.ripplesadvisory.com and subscribe us to get a FREE TRIAL Call 9303093093.

World ending stocks of cotton are forecast to decrease by 7 % to 17.8 million tons at the end of 2016-17 as China continues to reduce its stocks. Ending stocks in China, where much of the excess stocks are held, dipped 13 % to 11.3 million tons as the government sold over 2 million tons from its reserves from May through September 2016. From 2009-10 to 2014-15, world ending stocks increased by 140 per cent and reached a world record of 22.2 million tons. In 2015-16, the drop in world production led to a 14 % reduction in stocks to 19.1 million tons.

Meanwhile, the Chinese government restricted import quota to the volume required by its WTO commitments in 2015 and 2016. The government has also announced that it will continue to sell from its reserves next year, beginning March 2017 when the majority of the new crop will have been sold.

As a result of the government selling from its reserves, cotton stocks in China are expected to decline by 15%  to 9.6 million tons by the end of 2016-17. However, stocks outside of China may rise by 4 % to 8.2 million tons, after falling by 16 % to 7.9 million tons, the International Cotton Advisory Committee (ICAC) said in a release.