In May, USDA released final U.S. cotton area, yield, and production estimates for 2007/08. The most notable adjustments were in production and yield, as area was about unchanged. The final production estimate was lowered to 19.2 million bales, based on the final Ginnings report, and produced a record national yield of 879 pounds per harvested acre.
Meanwhile, U.S. cotton demand also was lowered in May, with reductions in both exports and mill use. Exports were lowered to 14.2 million bales, while mill use was reduced to 4.6 million; both decreases were the result of recent activity. With total demand at 18.8 million bales and production at 19.2 million, stocks are rising once again this season. Ending stocks for 2007/08 are estimated at 9.9 million bales, the largest since the mid-1960s.
Source: USDA