# USDA Drops Cotton Production Estimate On Drought Fears

Author: Jim.Robinson
Published: 2011-06-10
Canonical URL: https://www.cottongrower.com/market-analysis/production-outlook-acreage/usda-drops-cotton-production-estimate-on-drought-fears/

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***Bloomber News***

In its latest report, USDA says cotton production will fall to 17 million bales, compared with 18 million estimated a month ago. Six analysts surveyed by *Bloomberg News* forecast 17.38 million bales. Crops in Texas, the biggest producing state, are suffering after the driest May since 1956, according to an agricultural program at Texas A&M University in College Station.

“It’s a very reasonable downward estimate,” said Chris Kramedjian, a risk-management consultant at FCStone Fibers & Textiles in Nashville, Tennessee.

This will be the first time USDA has lowered its June production outlook from May since 1998, which was “also a severe drought year,” said Sharon Johnson, a senior analyst at Penson Futures in Atlanta.

“It suggests to me there will be additional cuts over time,” Johnson said.