US cotton ginnings total 2.5 percent less than output forecasts: USDA

US cotton ginners have processed 12.87 million 480-lb bales of cotton this season, the US Agriculture Department (USDA) said on Tuesday, indicating that 2013/14 production in the world's top exporter will be less than previously forecast. In its last assessment ahead of the agency's final ginnings report in May, the USDA estimated production so far this season at 2.5 percent below the USDA's most recent supply-demand forecast of 13.19 million bales, the lowest in four years.
The lower outlook, which is not expected to change significantly in the final report, was largely in line with industry expectations after farmers reduced acres this season because of weak prices and unfavourable weather hurt yields. Some traders said they expect the USDA will subsequently cut its expectations for US stocks by end-July, putting them at about 2.5 million bales, the lowest since 1990/91.