The US Department of Agriculture released its monthly June crop production and supply/demand report on Friday morning. The following are the key points for cotton: 2006/07 US crop - 20.70 million (480-lb) bales, from 20.70 million bales last month.
2006/07 US cotton exports - 16.8 million bales from 16.5 million bales last month. 2006/07 world production - 114.64 million bales from 115 million bales last month. 2006/07 world consumption - 122.46 million bales from 122 million bales in May. 2006/07 world ending stocks - 47.09 million bales from 47.42 million bales in last month's report.
2006/07 China production - 27.50 million bales from 28 million bales last month.
2006/07 China cotton imports - 20 million bales from 20 million bales in the May report. 2006/07 China consumption - 51 million bales from 51 million bales in the May data.
2006/07 China ending stocks - 11.01 million bales, down from last month's 11.5ld numbers are a bit friendly. It does nothing to change the bullish outlook for 2006/07."
She said the question is whether the cotton market, which has risen steadily despite the sell-off in the commodity sector has already priced in this report. She added the cut in China's crop is particularly bullish.
Mike Stevens, SFS Futures in Mandeville, Louisiana: "All it does is reinforce the bullish report we had last month. There's nothing in it to hurt the market."
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