US Cotton Production Reports for 2007/08
Source: United States Department of Agriculture Date: 2007-06-22
The U.S. cotton production for 2007/08 remains unchanged in June at 18.8 million bales. An update to cotton area will be issued at the end of June in the Acreage report. Total supply, however, increased slightly in June as revisions in 2006/07 pushed beginning stocks higher, to 9.8 million bales.
Meanwhile, total demand was unchanged at 21.9 million bales in 2007/08. Exports continue to account for the largest share as they remain projected at 17.5 million bales in 2007/08, 4.5 million bales higher than the current season. On the other hand, U.S. mill use continues to move lower as pressure from textile and apparel imports remains significant.
U.S. cotton mill use is currently projected at 4.4 million bales in 2007/08, the lowest in more than 100 years. U.S. cotton exports reached a record in 2005/06 and are expected to rise to their second highest level in 2007/08 as the United States continues as an export dominated market.
With these slight revisions, U.S. ending stocks for 2007/08 are currently estimated at 6.7 million bales, nearly one-third below the beginning level. The stocks-to-use ratio is also projected to fall from 55 percent in 2006/07 to 31 percent in 2007/08.
