World economic troubles are having an impact on cotton consumption, especially in China. According to USDA, slowdowns in Chinese mill consumption account for roughly half of the 2.4 percent reduction in projected world cotton consumption for 2008-09.
In its Nov. 10 world agricultural supply and demand estimates, USDA also reduced cotton consumption in Brazil, India, Pakistan, Thailand and Turkey. Lower consumption is expected to reduce world trade by 1 million bales, including a reduction of 500,000 bales in imports by China.
USDA also raised world stocks nearly 2 million bales from last month. That included a 1.25 million bale increase for China, where the government is buying cotton for the national reserve to support domestic prices.
USDA also projected a smaller world cotton crop by 900,000 bales and an increase in ending stocks of 3.5 percent.
Global 2008-09 wheat production is projected at a record 682.4 million tons, up 2.2 million from last month. Increases for EU-27 and Russia more than offset reductions for Argentina, Australia, and China.
World wheat imports and exports for 2008-09 were both raised this month. World wheat consumption was raised 900,000 tons for 2008-09 reflecting higher expected consumption for Afghanistan and Russia. Record production in Russia is expected to strain storage and handling capacity, boosting product and quality losses and adding to domestic disappearance. Global ending stocks for 2008-09 are raised 800,000 tons this month with increases for EU-27 and Russia mostly offset by reductions for Australia, China, and Pakistan.
World rice production is forecast at a record 434.3 million tons, up a million tons from last month due mainly to increases for China, India, Pakistan, South Korea and several African countries, which are partially offset by reductions for the United States, Brazil, and Russia. Global consumption was raised from a month ago due mainly to increases for China and several African countries.
Projected rice exports were increased for China, India, and Pakistan and lowered for the United States. Global ending stocks for 2008-09 are projected at 80.6 million tons, up slightly from last month, and an increase of 2.2 million from the 2007-08 estimate.