* Rising output, falling consumption hit cotton
* Indian decision to ease export ban a non-factor
* Suspected consumer buying trims market losses

NEW YORK, March 9 (Reuters) - Cotton futures finished
lower Friday after USDA estimated higher production worldwide,
but suspected consumer buying trimmed losses in fiber contracts,
analysts said.
The benchmark May contract on ICE Futures U.S.
declined 0.76 cent to finish at 88.80 cents per lb, dealing from
88.25 to 90.46 cents. For the week, the market was up 0.64
percent.
Volume traded Friday reached almost 22,000 lots, about 10
percent under the 30-day norm, Thomson Reuters data showed.
The catalyst for the weakness was the monthly supply/demnd
report by the U.S. Agriculture Department.
USDA upped world 2011/12 cotton production to 123.64 million
(480-lb) bales, from 123.34 million, reduced world consumption
to 108.72 million bales from 109.71 million, and raised world
ending stocks to 62.32 million from 60.77 million bales.
"The USDA report can't get (any) more bearish. It's more
production and less consumption. We've got an oversupply," said
Mike Stevens, an independent cotton analyst in Louisiana.
Despite the bearish numbers though, he said suspected trade
and consumer buying emerged at the lows.
The pattern over the past few weeks has been that every time
cotton prices dip below 88 cents, mill buying comes out and
prevents further losses in cotton futures, dealers said.
Over the last few months, USDA has been cutting world cotton
output and use, causing stocks to expand.
"On the surface, (the) numbers continue their bearish theme
and futures are selling off," said Sharon Johnson, senior cotton
analyst at commodities brokerage Penson Futures.
But she pointed out that the expansion in ending stocks was
caused mainly by China and "those stocks will not be available
to any one, external or internal, until deemed necessary by
Beijing and only then to their mills in a small way."
The market did not react to news that India would allow
cotton cleared by customs before March 4 to be exported, with
traders saying the decision had been expected by the market.

India is the world's No. 2 cotton producer and the biggest
exporter after the United States.
New Delhi had imposed a ban on cotton exports last Monday.
The decision was challenged by India's farm minister and the
Indian ministers meeting did not immediately decide on the
issue.