Flooding in the Mid-South and drought in Texas have reduced U.S. rice and cotton crops, according to USDA’s June 9 Crop Production and World Agricultural Supply and Demand Estimates.

Cotton

USDA reduced expected U.S. cotton production by 1 million bales to 17 million bales, due mainly to expected higher abandonment resulting from the increased severity of the drought in the Southwest. Exports were reduced 500,000 bales to 13 million bales. The stocks-to-use ratio of 15 percent is above 2010-11, but remains the second lowest since 1995-96.

Forecast consumption by China was reduced 500,000 bales, as the recent slow pace of imports indicates sluggish demand now and early in the new marketing year. World ending stocks were raised marginally.