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Cotton consumption reduces 1.3% from last month
Feb '08
This month's 2007/08 U.S. cotton estimates include lower exports and higher ending stocks. Production and domestic mill use are unchanged. Exports are reduced 300,000 bales, due mainly to the slow pace of export shipments and a reduced import forecast for China. Accordingly, ending stocks are raised to 8.2 million bales.

The world cotton 2007/08 estimates include higher production, lower consumption and an increase in ending stocks of nearly 5 percent relative to last month. World production is raised about 1.0 million bales, as increases for China, Pakistan, and Brazil are partially offset by decreases for India and others.

World consumption is reduced 1.3 percent from last month, as slowing world economic growth is reflected in lower mill use for China, India, Thailand, and Turkey. China's consumption is reduced 1.0 million bales, as anecdotal reports of credit problems and rising yarn inventories were corroborated by slower growth seen in China's December textile exports; however, China's consumption is still forecast to rise 8 percent from 2006/07.

Lower forecast world consumption results in lower world imports, including a 500,000-bale reduction in the import forecast for China. With lower demand, exports are reduced in several countries, including Australia, Brazil, India, and the United States. China accounts for over half of the 2.6-million-bale increase in world stocks.

Cotton Council International

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