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Smaller World Cotton Crop Seen

WASHINGTON - Jun 11/07 - SNS -- Cotton production around the world could be smaller than initially expected, but supply will remain relatively high, according to the latest supply and demand outlooks estimates from the USDA's World Agricultural Outlook Board.

World production is expected to come in at 115.89 million bales, down from last month's 116 million bale forecast; but available supplies are now expected to be higher at 172.27 million bales, down from this season's 173.35 million, but well above the 169.41 million on hand in 2005-06.

Beginning stocks are raised in Pakistan due to historical revisions in production, but are lowered in China due to a reduction in imports for 2006-07.

World production in 2007-08 is virtually unchanged, and higher world consumption partially offsets the larger beginning stocks. Accordingly, ending stocks are raised about 0.5 million bales from last month's estimate.


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