USDA Projects Lowest Stocks in 15 Years
May 25, 2010 In its May report, USDA projected U.S. 2010/11 production at 16.70 million bales.
Ending stocks are projected to drop to 3.0 million bales – the lowest since 1995/96 – for a stocks-to-use ratio of 17.9 percent.
Mill use is seen at 3.30 million bales, with exports rising to 13.50 million bales.
For the 2010/11 marketing year, USDA projected world production to be 113.88 million bales. Mill use is set at 119.08 million bales. Beginning stocks of 52.75 million bales would result in world ending stocks of 50.13 million bales on July 31, ’11, and a stocks-to-use ratio of 42.1 percent.
USDA finalized U.S. cotton production for the 2009/10 marketing year at 12.19 million bales, an increase of 40,000 bales from the previous month. Mill use was lowered 100,000 to 3.40 million bales and exports were unchanged at 12.00 million bales. The estimated total offtake of 15.40 million bales resulted in ending stocks of 3.10 million bales for a stocks-to-use ratio of 20.1 percent.
World production for the 2009-2010 marketing year was estimated to be 102.91 million bales, up 1.19 million bales from the April report. China accounts for most of the increase, based on reports of higher production for Xinjiang. World mill use was lowered 180,000 bales. Consequently, world ending stocks are estimated to be 52.75 million bales with a stocks-to-use ratio of 45.5 percent.
GET THE NEWSLETTER TODAY!
