World Cotton Demand Eases

WASHINGTON - Oct 12/06 - SNS -- Larger supplies and lower consumption are boosting projected 2006-07 world cotton stocks by 12% compared with last month to a forecast 170.9 million metric tons (MT), according to the latest supply and demand forecasts from the USDA's World Agricultural Outlook Board.

Beginning stocks are raised 5% based on a reassessment of 2005-06 ending stocks in China. World production for 2006-07 is 1% higher as increases for China, Uzbekistan, and the United States are partially offset by reductions for Australia and Iran.

World consumption is reduced 1% from last month due to decreases for China and the United States. Analysis of China's current supply situation has resulted in lower estimates of consumption and further adjustments in the residual factor for both 2005-06 and 2006-07.

World trade is reduced nearly 2% due mainly to lower China import demand; accordingly, exports are reduced in several countries, but raised in Uzbekistan. While the world stocks forecast is significantly above last month, stocks are still forecast to fall nearly 5% from the beginning level.

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