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The monthly supply/demand report by the US Agriculture Department will probably have a neutral impact on the cotton market because all the changes were in line with trade expectations, analysts said Friday. USDA lowered US cotton exports to 14 million (480-lb) bales from 14.5 million last month and cut China's imports to 14 million bales from 15.5 million.
"There were no surprises," said Sharon Johnson, cotton expert for First Capitol Group in Atlanta, adding the market will probably have a neutral reaction to the numbers. The key May cotton contract in the New York Board of Trade's open-outcry pit closed Thursday at 54.49 cents per lb.

Copyright Reuters, 2007

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