Modest Decline in World Cotton Crop

WASHINGTON - Jun 9/06 - SNS -- World cotton production will likely end up smaller than expected in 2006-07, but this season's crop is somewhat larger, according to the latest supply and demand outlook report from the USDA's World Agricultural Outlook Board.

For 2006-07, world production and ending stocks are projected marginally lower, while consumption is projected marginally higher. China's production is reduced 500,000 bales from last month based on lower forecast area. Global ending stocks are now projected 11% below the beginning level.

For 2005-06, world production is raised about 700,000 bales, as increases for India, Pakistan, Uzbekistan, and Zimbabwe are partially offset by reductions for some African Franc Zone countries, Syria, and Paraguay. U.S. estimated mill use and ending stocks reflect recent revisions from the Bureau of the Census beginning in 2003-04.

This month's 2006-07 U.S. cotton projections include slight increases in beginning stocks and total disappearance, leaving ending stocks unchanged at 4.9 million bales. The production estimate is unchanged from last month.

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