World cotton production is expected to decline by 1% to 25.1 million tons in 2007/08, and world mill use is projected to increase by 2.6% to 26.8 million tons.

Driven by China (Mainland), India and Pakistan, Asia is expected to account for 55% of world cotton production in 2007/08, up from 53% in 2006/07, and for 76% of world mill use in 2007/08, up from 74% in 2006/07.

World cotton imports are expected to increase from 8.3 million tons in 2006/07 to 8.9 million tons in 2007/08, driven by a forecast rebound in Chinese imports.

However, imports by other Asian countries and the rest of the world are expected to decline. U.S. exports are projected to increase by 25% to 3.6 million tons in 2007/08, due to large stocks, increased demand from China (Mainland), and lower competition from other large exporting countries.

World cotton ending stocks are expected to decline by 10% to 11.0 million tons in 2007/08, after a decline of only 1% in 2006/07.