Cotton Supply Grows Faster Than Demand

WASHINGTON - Feb 9/07 - SNS -- Residual supplies of cotton on world markets is expected to be higher than first thought as a marginal increase in production more than compensate for a marginal advance inn usage, according to the latest supply and demand forecasts from the USDA's World Agricultural Outlook Board.

Production increases for China and Pakistan are more than offset by reductions for Australia, Mali, and others. Consumption is raised mainly in Turkey, partially offset by a reduction for Brazil. World trade is reduced about 1%, with imports lower for China and India, but higher for Turkey.

Lower forecast U.S. exports are nearly offset by higher exports by India. Despite lower production and higher consumption, world stocks are raised 1.3% due mainly to an increase in the residual supply factor for China. China's continued sluggish import demand suggests that domestic supplies are higher than previously estimated.

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