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Cotton Use to Exceed Supply
WASHINGTON - May 11/07 - SNS -- Cotton consumption will likely run ahead of production in the coming marketing year, according to the latest forecasts from the USDA's World Agricultural Outlook Board.
World production is forecast at 116.0 million bales for 2007-06, down slightly from the 117.05 million bales produced in 2006-07.
World consumption is projected at 127.0 million bales, an increase of nearly 4%, reflecting continued strong world economic growth and competitive cotton prices relative to polyester.
The China balance sheet shows production stable and consumption rising 8% to 54.0 million bales. The China residual factor is raised beginning in 2005-06 to represent the likely existence of supplies not accounted for in the official data, as evidenced by weaker than anticipated import demand during the 2006-07 season.
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