This is despite higher U.S. production and is attributed to lower global demand, with global consumption forecast down more than 174,000 tonnes compared with the previous month to 23.9 m.

Major consumers including China, India, and Pakistan are facing challenges including a downward trend in profit margins and yarn orders, which in turn have resulted in conservative buying practices for cotton lint. Additionally, a lower global consumption forecast reflects the slowing of overall global demand for cotton products. China still remains the largest destination for U.S. cotton exports, but outstanding sales are significantly lower compared with the previous year. Despite Pakistan holding the largest portion of U.S. outstanding sales, issues with financing are slowing shipments and new sales.

Lower projected U.S. exports are expected to increase U.S. ending stocks to 914,000 tonnes, 152,000 tonnes higher compared with last month and symbolic of lower global consumption prospects.