US Department of Agriculture released its monthly supply/demand report on Tuesday morning. The following are the key points for cotton: 2008/09 US crop - 13.77 million (480-lb) bales, from 14 million in last month's report. 2008/09 US cotton exports - 15 million bales, from 14.5 million in the July report.
2008/09 US cotton ending stocks - 4.6 million bales, from the previous month's 5.3 million bales. 2008/09 world production - 112.16 million bales from 114.94 million bales in the July report.
2008/09 world consumption - 124.54 million bales from 125.91 million bales in last month's data. 2008/09 world ending stocks - 50.98 million bales from 53.24 million bales last month. 2008/09 China production - 35.50 million bales from 35.50 million in last month's data.
2008/09 China cotton imports - 13 million bales from 13.50 million bales last month. 2008/09 China ending stocks - 15.94 million bales, from 16.44 million last month. 2008/09 India production - 24 million bales, from 25.5 million bales in last month's report.
Sharon Johnson, cotton expert for First Capitol Group in Atlanta, Georgia "These are wildly bullish numbers. Everybody's (production is) down (and) they didn't cut consumption much." She was referring particular to lower cotton output in countries like Turkey, the Central African zone and India.
"It speaks to much higher prices" in the cotton market going forward, she said, adding the lows hit last week around 68 cents are not probably going to be challenged in the weeks ahead. Keith Brown, president of commodity firm Keith Brown and Co in Moultrie, Georgia "It's (a) very bullish (report)." He said the USDA reduced the US cotton crop estimate at a lower rate than expected and the fall in world ending stocks would mean a tight supply situation in the coming months.