COTTON: The 2016/17 U.S. cotton estimates include larger production and ending stocks relative to last month. Production is raised 263,000 bales, as increases for the Southwest and California are partially offset by reductions for the Southeast. Beginning stocks are revised 100,000 bales lower based on indicated stocks as of July 31, 2016, while domestic mill use is reduced slightly in both 2015/16 and 2016/17 based on recent activity. The export forecast is unchanged. Ending stocks are now projected at 4.9 million bales, or 33 percent of total use. The forecast range for the marketing year average farm price is unchanged at 57 to 69 cents per pound.
With larger 2016/17 world cotton production mostly offset by lower beginning stocks, world ending stocks are raised only marginally this month. Beginning stocks are reduced for Brazil, the United States, China, and others due to revisions in the 2015/16 estimates. Production is raised for several countries, including Australia, the United States, Pakistan, Turkey, Burkina Faso, and Mali, but is lowered for India, Tanzania, and Zimbabwe. Global consumption is virtually unchanged and trade is revised down marginally. World ending stocks are projected at 89.8 million bales.
Source : USDA WASDE