Global cotton production during the marketing year 2005-06 (August-July) is estimated at 111.7 million bales, down 7per cent from previous season's output, according to a report by US Department of Agriculture. Consumption is seen at 114.4 million bales, 5 per cent higher than that of last season, it said. (1 bale=170 kilograms) 
 
Production during the current season is estimated to be lower in major cotton producing nations including China, Pakistan and Brazil, the report said. 
 
The three countries would account for over 85 per cent of the fall in output while the production of India and U.S. is seen flat from 2004-05, it said. 
 
The total cotton output outside the US is estimated around 88.6 million bales, down 9 per cent from that of the previous season, the USDA said. Cotton consumption outside US is set to touch a high of 108.4 million bales while US . mill use is set to decline further, USDA said. 
 
According to the report, mill use outside the US is expected to rise for the seventh consecutive season and the largest gains are anticipated in China, India, and Pakistan. 
 
"China is expected to account for 70 per cent of global consumption increase during 2005-06 and, at 42.5 million bales, China's share of world cotton consumption will surpass 37per cent," it said. 
 
The USDA report further said that with non-U.S. consumption exceeding production in 2005-06, global trade in raw cotton is forecast to rise by 17per cent this season to 40.8 million bales. The US and other major cotton producing countries would benefit from the gap between non-US production and consumption. 
 
Meanwhile, the global ending stocks during the current season are forecast at around 50.2 million bales, which is around 600,000 bales lower than that of the previous season, USDA said. 
 
The USDA attributed the decline to continued growth in global consumption and reduction in global output from 2004-05 record crops. 
 
Cotton stocks outside the U.S. are expected to decline during the season especially in China while stocks in the US are expected to rise by one million bales, the USDA said. 

Business-standard.com