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Tighter World Cotton Picture
WASHINGTON - May 12/06 - SNS -- World cotton production should be rise in 2006-07 at 115 million metric tons (MT) versus 113.41 million last season and 120.50 million MT in 2004-05, according to updated supply and demand forecasts by the USDA's World Agricultural Outlook Board.
The world 2006-07 projections show consumption increases outstripping production, resulting in a stocks decline of nearly 10% from 2005-06.
World consumption is projected at 122.0 million bales, a 4% increase, reflecting continued robust world economic growth. China accounts for virtually all of the increase, rising nearly 10%. Projected China consumption of 51.0 million bales takes into account recent growth in yarn production and textile trade, as well as growth in China's domestic market due to rapid economic expansion.
World trade is forecast about even with 2005-06's 43.5 million bales and includes 20.0 million bales of imports by China. World ending stocks are projected at 47.4 million bales.
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