World Cotton Production, Supplies Seen Higher Than ForecastMarvin G. Perez
The U.S. Department of Agriculture unexpectedly raised its forecast of world cotton stockpiles and production, while the domestic supply outlook remained unchanged.
Global cotton inventories will be at 97.61 million bales by July 31, according to the agency. That’s 9.5 percent bigger than stockpiles a year earlier and compares with last month’s projection of 96.41 million. Analysts surveyed by Bloomberg News expected 96.1 million, on average.
World production will be 117.81 million bales, the agency said, higher than its December estimate of 116.83 million. Analysts anticipated 116.81 million.
In the 12 months started Aug. 1, output in the U.S., the world’s top exporter, will be 13.19 million bales, up from 13.07 million projected in December. Stockpiles by July 31 will be 3 million bales.
Cotton traded on ICE Futures U.S. in New York rose 13 percent in 2013. A bale weighs 480 pounds, or 218 kilograms.