According to reports, by next year in 2017, cotton supplies in US will be smaller than previously forecast because of rising prices and larger-than-expected purchases in China, the world’s biggest buyer.
Inventories on July 31, 2017, will be 4.3 million bales, 12 percent less than projected last month and below the lowest estimate in a Bloomberg survey of analysts, the U.S. Department of Agriculture said in the report released Wednesday.
The supply would be expected at 4.9 million bales, as per the average estimate, little changed from the USDA’s forecast in September.
The government raised its estimate of Chinese consumption to 35.5 million bales from 35 million last month.
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