Universal Flue-Cured Tobacco Output Projection Little Changed

Source from:  By Carli Lourens June 23 (Bloomberg) 06/24/2008

Universal Corp., the world's biggest tobacco-leaf merchant, forecast global output of the top grade of the commodity at 3.936 billion kilograms (8.7 billion pounds) this year, little changed from last month's projection. The estimate is less than 0.1 percent higher than last month's forecast of 3.933 billion kilograms and 1.8 percent above last year's production of 3.868 billion kilograms of flue-cured tobacco, Richmond, Virginia-based Universal said on its Web site. The projection for Canada's crop was increased by 2.6 million kilograms and Italy's by 2.2 million kilograms, Universal said. Global burley tobacco production will probably be 708 million kilograms, compared with last month's forecast of 711, Universal said. The latest projection is 14 percent higher than last year's output of 620 million kilograms. Universal's forecast of 242 million kilograms of oriental tobacco production was 1.6 percent lower than the previous projection of 246 million. The estimate is 9.7 percent less than the 268 million kilograms produced last year. Flue-cured tobacco is dried in a closed barn with heat piped from a furnace, while burley is cured in the open air. Oriental tobacco is an aromatic leaf. To contact the reporter on this story: Carli Lourens in Johannesburg at clourens@bloomberg.net Enditem