USDA says 2016/17 world cotton output to be 101.6mn bales

In its August report, USDA projected world cotton output at 101.6 million bales in 2016/17, down one million bales below the July 2016 forecast, however 4.7 million bales above the 2015/16 season, but still 9 per cent below world use. The rise in 2016/17 output has been mainly attributed to the US, with gains also expected in India, Brazil and Pakistan.

The US agriculture agency also said that cotton yield is estimated to spring back and more than offset an area decrease from alternative crops this season.

The report estimated world cotton harvested area in 2016/17 at 29.7 million hectares or 73.3 million acres, 3 per cent below 2015/16 and the lowest since 1986/87, while world yield is projected at 745 kg/hectare or 665 pounds per acre.

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Indian cotton production is estimated 27.0 million bales in 2016/17, 2 percent above 2015/16, while in China it is forecast at 21.0 million bales in 2016/17, 4.5 per cent below a season ago, as area earmarked for cotton drops for the fifth consecutive season.

Pakistan’s cotton output is estimated at 8.0 million bales this season, with area too forecast at its lowest since 1988/89, while the country’s higher yield expected to boost production over the 2015/16 season.

Brazil’s cotton crop is also projected to increase to 6.65 million bales in 2016/17, 550,000 bales above 2015/16 production from increase in yields, although harvested area is forecast to be unchanged over the prior season.