Cotton exports from the United States in the 11 months of 2016-17 marketing year, are running over 70 per cent ahead of the same period last year and is on track to reach 14.5 million bales, the second highest level on record. The United States Department of Agriculture (USDA) cotton reports notes that the increase in exports is widely distributed across markets, with exports up in 20 of the 25 largest US markets.

Among the top 10 markets, only Mexico and Turkey have not exhibited robust growth. Mexico’s mill use has been declining and the US has a pre-existing near-100 per cent share of the import market, therefore export growth to Mexico is limited. Export growth in Turkey has been constrained by a much larger domestic crop which has reduced overall import demand by over 25 per cent.The increase in US exports represents a large increase in the US market share of Turkey’s imports.

Globally, strong US exports reflect improved market share in many markets, as the global consumption recovery has only modestly raised world import demand. Vietnam is likely to remain the largest market for US cotton with shipments up 70 per cent as import demand continues to expand and the already strong US market share grows, perhaps reaching 60 per cent this season. Continuing expansion of Vietnam’s mill use has supported extremely robust sales this year.

Shipments have nearly tripled to China, India, Indonesia and Pakistan as US cotton has captured a greater market share alongside substantial expansion of total imports in these countries. With exports to China up by nearly 200 per cent, it is now set to be the second largest US market, after having fallen to fifth place in 2015/16, its lowest ranking in 15 years. Globally, the USDA’s forecast for 2017/18 shows higher cotton production, primarily in India.