United States cotton production estimates for the 2014/15 crop season are down owed to a lower crop estimate for Texas.
In its latest World Agricultural Supply and Demand Estimates report released Wednesday, USDA reduced its cotton production projection by 474,000 bales. In last month’s report, the United States Department of Agriculture (USDA) raised production estimates to 16.4 million bales.
Domestic mill use and exports are unchanged, and ending stocks are now forecast at 4.6 million bales.
The average price received by producers for the marketing year is projected at$0.59 to $0.64 per pound, a $0.03 increase on the lower end of the range as a result of stronger-than-expected early season prices.
Global cotton consumption is reduced nearly 1.3 million bales, reflecting lower forecasts for China, India, Brazil, Pakistan and Turkey, USDA said. World ending stocks are projected at just above 108 million bales.
“While the projected world consumption growth rate of 3.3 percent remains above the historical average, current indications are that mills’ response to this season’s sharply lower cotton prices is lagging previous expectations,” the report noted.