News

USDA reduces U.S. cotton, rice ending stocks

The USDA has tightened the domestic balance sheets for old and new crop cotton and rice.

Old crop rice stocks are pegged at 40.9 million hundredweight, down 2 million on the month, with the USDA lowering imports and raising exports by 1 million hundredweight each, pulling new crop ending stocks 2 million hundredweight lower to 39 million, with no other adjustments. The average 2020/21 farm price is estimated at $13.90 per hundredweight, compared to $13.60 for 2019/20 and the projection of $14.20 for 2021/22.

Old crop cotton is estimated at 3.15 million bales, 150,000 less than last month on an upward revision for exports, with new crop stocks at 2.9 million bales, a decrease of 200,000 because of the lower beginning stocks and a reduction in unaccounted for supplies. The average 2020/21 farm price is estimated at $.67 per pound, compared to $.596 for 2019/20 and $.75 for 2021/22.

Global adjustments for cotton and rice were minimal.

The current marketing year for cotton and rice runs through the end of July.

The USDA’s next set of supply and demand estimates is out July 12^th.