US cotton exports reached their highest level since 2005-06 and are the second highest on record. China was the second largest destination for US cotton and served as the largest market for US pima. Demand for pima and upland cotton continues to grow as China pursues higher quality inputs and works domestic stocks down further.

US exports to Pakistan saw the largest year over year increase despite its larger domestic crop. The country’s yarn production continues to grow and is expected to expand into 2018-19, a promising sign for US export prospects. Shipments to Mexico and Turkey were down compared to the previous year, due to higher production in those countries.

Compared with last year, US cotton shipments expanded in four of the top five markets. Expanding use in Southeast and South Asia has underpinned significant US shipments. Vietnam continued for the third year as the top US market where shipments surpassed last year’s record, owing to the country’s record yarn production and robust yarn exports.

US exports are forecast down slightly the next year with exportable supplies lower in the United States and higher for the rest of the world excluding China. Nonetheless, 2018-19 US shipments are forecast to be the second-highest since 2005-06.