Global Cotton Outlook Raised as India Crop Gains, USDA SaysLuzi Ann Javier and Jeanna Smialek
Global cotton production will be 0.9 percent bigger than forecast last month on improved crop prospects in countries including Brazil and India, the U.S. Department of Agriculture said.
World output will total 117.42 million bales in the 12 months that began Aug. 1, more than the 116.38 million forecast last month, the USDA said today in a report. Analysts surveyed by Bloomberg News on average forecast 117 million bales. Stockpiles may be 94.73 million, up from 93.77 million.
Production in the U.S., the world’s largest shipper, will be 12.9 million bales, 1.1 percent lower than last month’s forecast. Analysts estimated 13.18 million.
Cotton for December delivery fell 0.1 percent to 84.26 cents a pound at 12:39 p.m. on ICE Futures U.S. Before the USDA report at noon, the price rose as much as 0.6 percent. After the data, the fiber dropped as much as 0.9 percent.
Trading was 20 percent below the 100-day average for this time, according to data compiled by Bloomberg.
Through yesterday, futures climbed 12 percent this year.
A bale weighs 480 pounds, or 218 kilograms.