World cotton production is projected to decline in the latest Supply and Demand (WASDE) report released by the US Department of Agriculture (USDA). However, lower consumption and exports, coupled with higher ending stocks, present a negative outlook for cotton fundamentals.
The global 2025-26 balance sheet for December shows slightly lower production, consumption and trade, but higher ending stocks compared with last month.
For the 2025–26 season, global cotton production has been reduced by almost 300,000 bales to 119.79 million bales of 480 pounds in the December 2025 report. The downward revision is mainly due to lower area and output in the African Franc Zone, partially offset by a larger crop in the United States.
