U.S. 2012/13 Cotton Forecast Shows Slightly Higher Production
COTTON: This month’s U.S. 2012/13 cotton forecast shows slightly higher production, resulting in a marginal increase in ending stocks. Production is raised 160,000 bales, as increases in the Southeast and Delta more than offset a reduction for the Southwest. Domestic mill use and exports are unchanged. Ending stocks are raised 100,000 bales to 5.8 million. The forecast range for the average price received by producers of 64-72 cents per pound is narrowed 2 cents on each end.
Slight revisions to the global supply and demand estimates also result in marginally higher ending stocks. World production is raised 500,000 bales, reflecting increases for Uzbekistan, the United States, and some African countries. World consumption is reduced 500,000 bales, mainly in China, where free supplies are tightening due to the accumulation of production in the national reserve. World trade is raised marginally from last month. Forecast world ending stocks now exceed 80 million bales.
Source: USDA