USDA sees higher new crop cotton, rice ending stocks
The USDA expects a bigger carryout for U.S. cotton and rice in the coming marketing year.
New crop rice ending stocks are projected at nearly 42 million hundredweight, compared to 30.5 million this marketing year, on a bigger crop, better average yield, and higher acreage totals cancelling out improved use, and the department anticipates a lower average farm price.
New crop cotton ending stocks are seen at 7.7 million bales, with a big jump in old crop ending stocks, or new crop carryover, cancelling out a slightly smaller crop and expected better demand, pressuring the new crop price outlook. 2019 upland U.S. cotton ginnings were 18.7 million bales, 1.6 million above in 2018, but more than a million below 2017.
The USDA also expects bigger new crop world ending stocks for cotton and rice, with record global rice production.
The new marketing year for cotton and rice starts August 1st.
The USDA’s next set of supply, demand, and production estimates is out June 11th.