COTTON: This month’s 2012/13 U.S. cotton forecasts include higher exports and lower ending stocks relative to last month. Estimates of production and domestic mill use are unchanged. Exports are raised slightly to 12.5 million bales, due mainly to an increase in projected imports by China.
Ending stocks are forecast at 4.5 million bales, accounting for 28 percent of total disappearance. The forecast range for the marketing year average price received by producers of 69-73 cents per pound is raised 3 cents on the lower end and 2 cents on the upper end of the range, reflecting a sharp increase in the price received for December.
The aggregate world 2012/13 production, consumption, and stocks forecasts show only slight revisions this month, but increases in China’s production and imports are raising the expected concentration of stocks there. World production is estimated marginally higher, as increases for China and Kazakhstan are mostly offset by decreases for Pakistan and Turkey.
World consumption likewise is increased marginally, reflecting increases for Turkey and others. China’s imports are raised 1.5 million bales to 14.0 million, increasing world trade by a like amount, based on heavy imports during the first half of the marketing year. Exports are raised for the United States, Australia, Brazil, Uzbekistan, the African Franc Zone, Greece, and others. World ending stocks are virtually unchanged at 81.9 million bales, but China’s stocks are raised 2.0 million bales to 42.6 million, accounting for 52 percent of world stocks.
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