Tightening World Cotton Outlook

WASHINGTON - Aug 12/08 - SNS -- The world cotton 2008-09 forecasts show lower supplies, use, and ending stocks relative to last month, according to the latest forecasts from the USDA's World Agricultural Outlook Board.

Beginning stocks are reduced about 900,000. Production is lowered 2.4% to 112.2 million bales, due to reductions for India, Australia, the African Franc Zone, and Turkey, in addition to the United States. India's production is reduced 1.5 million bales based mainly on indications of lower area and production in the northern states. The decline in world production is partially offset by a decrease in world consumption, which is based on both the slowing world economy and more limited world cotton supplies.

Consumption estimates are lowered for China, India, Turkey, Pakistan, and others, but raised for Bangladesh. Forecast world stocks are reduced to 51.0 million bales, a 4-percent decline from last month and 9.4 million below the beginning level.

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