Improved World Cottton Supply

WASHINGTON - Oct 10/08 - SNS -- The 2008-09 world cotton supply and demand estimates show a 1.4% increase in world production to 113.76 million 480-pound bales and a 1.1% decrease in world consumption to 122.31 million relative to last month, according to the latest supply and demand forecasts from the USDA's World Agricultural Outlook Board.

Production is raised in China, based on recent reports from official sources; production also is raised in India and Brazil. Forecasts of world consumption are reduced in several countries, as the crisis in world financial markets is projected to cut consumer spending and purchases of textiles.

Consumption is lowered in China, Turkey, Bangladesh, India, Pakistan, Russia, and others. Higher production and lower consumption reduce the world trade forecast by 2.4 million bales, including 1.0 million bales in imports by China. World ending stocks are raised 6% from last month to 55.5 million bales, but still are reduced nearly 10% from the beginning level.

The 2008-09 U.S. cotton supply and demand estimates include slightly lower production and sharply lower exports relative to last month, resulting in a 27-% increase in forecast ending stocks. U.S. production is reduced mainly in Louisiana and Mississippi.

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