China: BCO supply and demand forecast

Beijing Cotton Outlook (BCO) has maintained most figures unchanged in its latest August supply and demand report. For 2018/19, beginning stocks and productions were both unaltered, at 5,920,000 and 5,770,000 tonnes, respectively. However, imports have been further raised by 160,000, to 2,010,000 tonnes, given the bulk arrival of Australian and Brazilian origins in the later stage of the season, as well as a certain amount of US cotton had been bought before the deterioration of the trade frictions earlier this month. Consumption was also unchanged at 8,260,000 tonnes, so total supply has been increased by 160,000, to 13,700,000 tonnes, and ending stocks at 5,440,000 (+160,000).

For 2019/20, total supply was now placed at 12,910,000 tonnes (+160,000), productions and imports remained at 5,590,000 and 1,880,000 tonnes, respectively, and consumption at 8,260,000. So the ending stocks by the end of the next season have been raised by 160,000, to 4,650,000 tonnes.

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