Rising World Cotton Supply

WASHINGTON - Dec 11/07 - SNS -- Declining world cotton production is being matched by falling consumption, according to the latest forecasts from the USDA's World Agricultural Outlook Board, resulting in an increase in forecast ending stocks for the 2007-08 marketing campaign from 54.81 to 55.29 million 480 pound bales.

World production is reduced less than 1% to 118.76 million bales, as sharply lower production in Pakistan is partly offset by increases for India, the United States, Iran, and Uzbekistan. Consumption is reduced mainly in Pakistan, based on lower supplies and declining textile exports. World trade is raised marginally due to higher imports by Pakistan. World ending stocks are raised nearly 1% from last month to 55.3 million.

This month's U.S. 2007-08 cotton supply and demand estimates include marginally higher production and ending stocks. Production is raised 125,000 bales, due to small increases in several states. Domestic mill use and exports are unchanged. Ending stocks are raised 100,000 bales to 7.7 million.

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