US cotton production has been reduced 474,000 bales for 2014/15

US cotton production has been reduced 474,000 bales for 2014/15

Estimates for US cotton production and ending stocks have been lowered for 2014/15, according to the latest forecasts.

The US Department of Agriculture (USDA's) monthly World Agriculture Supply and Demand Estimates, domestic cotton production has been reduced 474,000 bales, due to a lower crop estimate for Texas.

Domestic mill use and exports remain unchanged from last month.

Ending stocks are now forecast at 4.6m bales, or one-third of total disappearance. Average prices expected at 59-64 cents per pound - a 3% increase on the lower end of the range, based on stronger-than-expected early season prices.

Global ending stocks, meanwhile, have been raised again this month, with falling consumption partially being offset by lower production.

Production is reduced for the US and Greece, with smaller revisions in several other countries. Global consumption is reduced nearly 1.3m bales, reflecting lower forecasts for China, India, Brazil, Pakistan, and Turkey.

While the projected world consumption growth rate of 3.3% remains above the historical average, current indications are that mills' response to this season's sharply lower cotton prices is lagging previous expectations, the USDA said.

World ending stocks are projected at just over 108m bales.