World Cotton Market Continues Shift

Data recently released from the U.S. Department of Agriculture reveals a continued trend in the textile industry as China becomes less dominant in yarn spinning, a first step in fabric production, and countries in South Asia and Southeast Asia claim more of the industry.

Beginning in 2011, the yarn spinning industry in India, Vietnam, Bangladesh, and Indonesia began to surpass Chinese yarn spinning, the department reports.

The market shift however has not significantly changed the global picture for production, consumption or stock prices. The department reports that as of April 2, total commitments of U.S. cotton exports were 10.23 million running bales, or 98% of the current export forecast. U.S. production and ending costs are raised, while exports and consumption are unchanged. The forecast for the U.S. season average has been lowered to 60 cents a pound.

A standout number in the department’s report projects a 150% increase in cotton imports in Pakistan. The country is expected to import 2 million bales of cotton in the 2015-2016 fiscal year. The cotton import is the highest in Pakistan in eight years and reflects, in part, diminished expectations after the country’s 10.5 million bales harvested in the fiscal year ending. S