On Friday, as expected, the US Department of agriculture's supply and demand report revised the US cotton balance sheet in July. The new cotton planting area has been lowered and the world's final inventory has been lowered. Analysts say the report has a slight positive effect on the market.

ICE US cotton responded to USDA's July supply and demand report, which rose in early trading.

The most active December cotton rose 135 points to 74.93 cents at 10:11 a.m.

Analysts say, from the surface, the United States Department of Agriculture reported good cotton trend.

Cotton production in the United States was revised to 14 million bales in 2008-09, lower than the 14 million 500 thousand package reported in June, which is also lower than the average 14 million 50 thousand package forecast by analysts.

2008-09 US exports dropped to 14 million 500 thousand packs, down from 15 million packages reported last month.

The new estimate is also below the average of 14 million 570 thousand packages predicted by analysts.

Exports are expected to be cut due to a reduction in US demand for goods and foreign imports.

2008-09 cotton consumption in the US is 4 million 400 thousand packs, almost the same as 4 million 300 thousand packages reported in June.

Although economic growth has slowed down, some factors still support domestic consumption, including higher ocean freight rates, weaker US dollar and 2008 food, maintenance and energy law funding for textile factories.

In the year 2008-09, the end of American cotton inventory was about 5 million 300 thousand packs, down from 5 million 400 thousand packages reported in June and 5 million 410 thousand packages expected by analysts.

The US output data were not adjusted in 2007-08.

2007-08 US cotton exports are locked at 13 million 900 thousand packs, consistent with the June report.

2007-08 cotton production in the United States has not been adjusted to 19 million 210 thousand bales.

As analysts expect, the amount of cotton used in the US 2007-08 has not been adjusted to 4 million 600 thousand bales.

The end of the year 2007-08 cotton inventory of 10 million 200 thousand packages, as reported in June.

World 2008-09 cotton balance data have been adjusted, which is regarded as positive by analysts.

The US Department of agriculture has lowered world 2008-09 production, consumption and final inventory expectations.

World production dropped from 116 million 430 thousand packages last month to 114 million 940 thousand packs, mainly due to India production and US production decline.

India's 2008-09 production is expected to drop by 1 million to 25 million 500 thousand packs, and India's planting area is reported to be reduced.

India's exports were also reduced to 7 million 200 thousand bales, lower than the 7 million 500 thousand package reported in June.

The US Department of agriculture expects 2008-09 world cotton consumption to be 125 million 910 thousand packs, lower than the 127 million 160 thousand package reported in June, because the recent signs of a slowdown in the world economy.

China's 2008-09 cotton consumption is expected to drop to 54 million packs, down from 55 million packages reported in June.

China's imports also dropped by 1 million to 13 million 500 thousand bales.

China is the world's largest cotton importing country.

World end inventory dropped to 53 million 240 thousand packs, down from 54 million 90 thousand packages reported in June.

The reduction of quantity is conducive to the trend of cotton market.

In addition, strong soybeans and crude oil also have a positive impact on the cotton market.

The cotton market digestion report will also focus on weather in US cotton growing areas and find price direction from weather factors.

Analysts say the temperature in the Delta and Dezhou will be basically normal in the next two weeks, but the precipitation will be low. This will be a psychological competition for investors.

Because you must care about the impact of drought on Yield and yield.