Domestic mills are anticipated to retain a slightly larger share of U.S. retail demand, due to the higher cost and longer response time required for shipping textile products from south and east Asia. With respect to exports, strong sales continue as the U.S. marketing loan program keeps U.S. cotton competitive despite stagnant world demand. World production for 2001-02 is nearly unchanged from last month. While southern hemisphere countries, including Brazil, Australia, and Argentina, are forecast to reduce planted area in response to extremely low world prices, these reductions are mostly offset by yield-based increases in Central Asia and the African Franc Zone. World consumption is reduced nearly 500,000 bales, primarily in India, Indonesia, and Pakistan, as a result of weakening global consumer demand.
World trade is virtually unchanged.
World stocks are raised 1 percent.