Cotton Usage Declining

WASHINGTON - Dec 11/08 - SNS -- World cotton production looks to be smaller than first thought at 111.56 million 480-pound bales as lower production for India, Brazil, Egypt, and others is partially offset by an increase for Pakistan, according to forecasts from the USDA's World Agricultural Outlook Board.

World consumption is reduced sharply for the second consecutive month, as deteriorating economic conditions continue to fade demand prospects. Consumption is lowered 2.7 million bales to 116.6 million, with China, India, Pakistan, and Turkey accounting for most of the decrease. The revised world consumption estimate is 5.5% lower than 2007-08, which is the largest year-to-year percentage reduction since 1943-44.

Consistent with lower world consumption, world trade is reduced 7% this month, due mainly to lower imports by China, Pakistan, and Turkey. India, the United States, and Uzbekistan account for most of the reduction in world exports. World stocks are raised 2.4%, but are still 2.6 million bales below the beginning level.

The U.S. cotton estimates for 2008-09 show lower domestic mill use and exports compared with last month, resulting in higher ending stocks. Production is raised slightly. Domestic mill use is reduced 100,000 bales, reflecting a marginal decline from the level of recent months.

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