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World Cotton Stocks Balance Unchanged

WASHINGTON - Jul 9/10 - SNS -- This month's world 2010-11 projections show higher production which is mostly offset by lower beginning stocks, according to the latest forecast from the USDA's World Agricultural Outlook Board.

Beginning stocks are reduced mainly in Pakistan, due to adjustments in production beginning in 2007-08 reflecting reduced estimates of average bale weights. Production for 2010-11 is raised in the United States, Brazil, and Uzbekistan, but lowered in Pakistan.

World consumption is raised slightly based on increases for Turkey and the United States. World trade is supported by projected higher import demand by Pakistan, Turkey, and China. World stocks are marginally above the June projection and the world stocks-to-use ratio is the smallest since 1994-95.

The U.S. 2010-11 cotton projections include higher production, domestic mill use, exports, and ending stocks compared with last month. Production of 18.3 million bales is raised nearly 10% from the June estimate due to higher planted area, as reported in the June 30 Acreage report, combined with lower expected abandonment and a higher average yield per harvested acre.

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