Tighter World Cotton Outlook

WASHINGTON - Sep 12/06 - SNS -- The world cotton situation will be marginally tighter than initially expected in 2006-07, according to the latest report from the USDA's World Agricultural Outlook Board.

Lower world beginning stocks and production, combined with increased consumption, reduce this month's forecast of 2006-07 ending stocks from 48.29 to 46.73 million 480 pound bales.

World production is reduced from 115.59 million bales last month to 114.94 million as lower crops in Pakistan, Brazil, Australia, Mali, and others are partially offset by increases for China and Turkey.

World consumption is raised 550,000 bales to 122.24 million, due mainly to an increase for India that is based on revised government estimates of mill consumption. The revisions for India affect both 2005-06 and 2006-07 and reduce India's estimated 2006-07 ending stocks by 14%.

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