According to USDA’s projections for the 2012 crop the U.S. cotton production forecast for 2012 remains at 17.0 million bales this month and is projected 1.4 million bales above the 2011 crop. Despite a reduction in planted area based on the June Acreage report, the crop was left unchanged as abandonment and yield were adjusted based on current conditions. While drought conditions are still prevalent across parts of the Cotton Belt this year, they are much improved from those in 2011. Abandonment and yield projections are based on 2009-11 averages, weighted by region; however, harvested area is further adjusted to include estimated abandonment of 30 percent in the Southwest. Based on the June Acreage report, U.S. producers indicated that they had planted or intended to plant more than 12.6 million acres to cotton in 2012, 4 percent below the March Prospective Plantings report and 14 percent below 2011. Although planted area is below last season, harvested area is projected 10 percent higher at 10.4 million acres. Improved moisture and crop conditions in the Southwest—compared with last season—are expected to reduce abandonment dramatically from 2011 when the region lost over 60 percent of the intended area. Nationally, U.S. abandonment for 2012 is projected at 18 percent (2.2 million acres), above the long term-average of 13 percent. The projected 012 abandonment compares with a record of 36 percent (5.3 million acres) set last season; the previous abandonment record of 27 percent occurred in 1933.