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2008/09 cotton production to dip marginally

17
May '08
The first U.S. Department of Agriculture (USDA) cotton forecast for 2008/09 indicates a small decrease in global cotton production, while world cotton mill use rises by a similar amount.

World production in 2008/09 is forecast to reach 118 million bales, a 2-percent decline or approximately 2.5 million bales. The dramatic decline in the United States' production forecast is partially offset by gains in the total foreign crop, which is expected to increase about 2 percent.

Meanwhile, global mill use is projected to rise by 2 percent in 2008/09, a below-average growth rate, as the world economy continues to grow more slowly than in recent years. World cotton mill use is forecast at 127 million bales in 2008/09, compared with the current season's 124.4 million bales.

Growth continues to come from outside the United States. With global mill use forecast to exceed production, 2008/09 ending stocks are projected to decline 6 million bales to nearly 55.6 million, the lowest in 5 years.

United States Department of Agriculture


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