Cotton product exports saw a decline as well, with exports totaling only 1.2 billion pounds during January-September 2012, 13 percent below the 2011 comparable period. As a result, the net cotton trade deficit has declined 5 percent during the first 9 months of 2012 to 4.9 billion pounds.

The top five suppliers of cotton textile and apparel products to the United States continue to account for more than 60 percent of the total. For January-September 2012, the share equaled 63 percent, up from 62 percent posted in for the comparable period of 2011 as well as calendar 2011.

Each of the leading suppliers, with the exception of India, had lower volumes to the United States during the first 9 months of 2012; India’s volume rose about 2 percent. Based on the latest data, the shares of total imports were mixed. China accounted for 32 percent of the volume so far in 2012, similar to calendar 2011. Pakistan and India each accounted for an additional 9 percent, while Bangladesh and Mexico each provided an additional 7 percent of total U.S. imports.

International Outlook

World Cotton Production To Decline in 2012/13

Global 2012/13 cotton production is forecast at 116.9 million bales, down 6 percent from the previous year as more profitable competing crops crowd out cotton from area under cultivation. Output decline is expected in almost all major producing countries.

Australia and Brazil are forecast to produce 4.0 million bales and 6.5 million bales, respectively, down 27 percent and 25 percent from the previous year. India and Pakistan are expected to produce 25.5 million bales and 10.0 million bales, respectively, down 7 percent and 6 percent from the preceding year. India’s 2012/13 production decline is driven by reductions in both area and yield, while the reduction in Pakistan is mainly a function of lower yields.