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Larger Cotton Supply in 2004-05
WASHINGTON - May 12/04 - SNS -- World cotton projections for 2004-05 reflect record production and consumption, with sharply higher production boosting stocks, argues the USDA in its latest World Agricultural Supply and Demand Estimates (WASDE) report.
Production is forecast at 102.5 million bales, nearly 10% above 2003-04, due primarily to the effect of higher world prices on planted area.
World consumption is projected to grow about 1% to 99.0 million bales; while economic conditions and trade liberalization are favorable to world textile consumption, cotton consumption will be constrained by the lagged effect of the current relatively high world prices.
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