Southern Southeastern, Inc.

The USDA World Agricultural Supply and Demand Estimates (WASDE) report for January 12, 2021, put U.S. ending stocks down by 1,100,000 bales and world ending sto...cks down 1,203,000 bales from the December 10, 2020, estimate. March cotton futures reacted immediately moving into new high territory. March at 81.49 is the highest of any cover month since September 2018. The U.S. numbers show a decrease in production of 996,000 bales and an increase in exports of 250,000 bales. U.S. domestic use is down by 100,000 bales from last month. The U.S. stocks-to-offtake ratio on August 1, 2021, is now projected at 26 percent, compared to 33 percent last month. A three-month carryout on August 1, if realized, will create a very tight situation before harvest of the 2021 crop. The WASDE projections show a decrease in global production of 1,036,000 bales, and an increase in global consumption of 100,000 bales versus the December projection. Globally, production is seen to be higher in Australia, Greece, and Turkey, but lower in Argentina, Mali, Pakistan, and the United States. Consumption is higher in only China and Turkey, but lower in Indonesia, Japan, Korea, South, Peru, Taiwan, Thailand, United States, and Vietnam. The WASDE projects imports will be higher for China, Mexico, Pakistan, and Turkey and lower for Indonesia, Japan, Korea, South, Peru, Taiwan, Thailand, and Vietnam. See full report here: https://bit.ly/3slPAwU