USDA Lowers World Cotton Estimate

WASHINGTON - Jan 11/08 - SNS -- World cotton stocks are slightly lower than thought last month because of a modest reduction in would output to 118.25 million 480-pound bales, according to forecast from the USDA's World Agricultural Outlook Board.

Production is reduced in China, Pakistan, the African Franc Zone, and Syria, but raised in India. Slightly lower world consumption reflects reductions for India and Taiwan. World trade is reduced 500,000 bales due to lower forecast imports by China and Taiwan, which are partially offset by an increase for Pakistan. World ending stocks are lowered about 500,000 bales.

This month's U.S. cotton forecasts for 2007-08 include marginally higher production, lower exports, and higher ending stocks. Production is raised 46,000 bales to 19.0 million. Domestic mill use is unchanged. Exports are lowered 200,000 bales to 16.0 million, due to sluggish shipments to date and lower imports by China. Accordingly, ending stocks are raised nearly 3% from last month to 7.9 million bales.

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