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Cotton trade to go up - USDA

11
Mar '10
USDA approves World Agricultural Supply and Demand Estimates for cotton. The U.S. cotton estimates for 2009/10 include higher domestic mill use and lower ending stocks this month. Production and exports are unchanged. Domestic mill use is raised 100,000 bales to 3.5 million, reflecting higher consumption in the months of November through January.

Ending stocks are forecast at 3.2 million bales, 20.6 percent of total use. The range for the marketing-year average price received by producers is raised 1.5 cents on the lower end and 0.5 cents on the higher end to 60.5 to 65.5 cents per pound. A combination of slightly lower production and slightly higher consumption is reducing forecast world cotton 2009/10 ending stocks from last month.

Production is reduced for China and Uzbekistan, but raised for Brazil and Turkmenistan. Consumption estimates are raised for Turkey, Vietnam, and the United States, partially offset by a reduction for Pakistan, which is based on a recent policy change to limit yarn exports.

World trade is raised 2 percent, reflecting higher imports by China, Turkey, and Vietnam, which more than offset a decrease for Pakistan. World stocks are reduced nearly 700,000 bales, a decline of just over 1 percent from last month.

USDA


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