In its July report, USDA projects US 2011-2012 cotton production at 16.00 million bales, down 1.00 million bales from the previous month. Exports were lowered 1.00 million bales to 12.00 million bales while mill use was unchanged at 3.80 million bales. Projected total offtake is 15.80 million bales. With beginning stocks of 2.75 million bales, this would result in US ending stocks of 3.00 million bales on July 31, 2012, and a stocks-to-use ratio of 19.0 percent.

For the 2010-2011 marketing year, USDA estimates US production to be 18.10 million bales. Mill use is unchanged from the previous month at 3.80 million bales while exports were lowered 500,000 bales to 14.50 million bales. The estimated total offtake now stands at 18.30 million bales, generating ending stocks of 2.75 million bales and a stocks-to-use ratio of 15 percent.

The USDA report projects world production for the 2011-2012 marketing year to be 123.16 million bales, down 610,000 bales from the June report. World mill use was lowered 2.20 million bales to 116.75 million bales. With beginning stocks at 44.40 million bales, this would result in world ending stocks of 51.00 million bales on July 31, 2012, and a stocks-to-use ratio of 43.7 percent.

For the 2010-2011 marketing year, USDA raised world production 270,000 bales from June to 114.56 million bales. Mill use is estimated at 114.93 million bales, 580,000 bales lower than the previous month. Consequently, world-ending stocks are estimated to be 44.40 million bales with a stocks-to-use ratio of 38.6 percent.