Home / Knowledge / News / Textiles / China's latest cotton acreage estimates down 12.6%
China's latest cotton acreage estimates down 12.6%
03
Jul '14
During the month of May, cotton sowing has completed nationwide in China, the weather conditions are not as good as the corresponding time last year. The delay in cotton growth may result in reduced unit yield. Textile is in off season and mills are looking forward to further cotton price decline and are very cautious at buying new stock.
 
Reserve cotton transactions have reduced, so has the import cotton volume during this month. Spot market is more than sluggish and commercial carryover stock is at a historical low. According to current cotton usage and market supply & demand, it is estimated that seasonal Chinese cotton import and consumption will reduce and ending stock will increase.
 
According to survey of China Cotton Association, the China’s cotton acreage of this year estimates to be 4.08 million hectares, 12.6% down over the year. From the cotton sowing to the end of May, weather conditions in cotton regions nationwide are not as good as last year. 98.8% of the cotton planting is completed, 2% faster than the corresponding time last year and the most cotton plants are in the third to fifth leaf stage. The large temperature change, heavy precipitations, gales and sand storms affected some cotton fields, especially in some fields in Xinjiang. Occurrence of disease and insects, it is light.
 
Domestic cotton market is still sluggish. Release of Reserve cotton continue. Though for the month the transaction volume reduced to 390,000 tons, due to weak demand, insufficient funds, low reserve cotton quality and price estimate. By the end of May, reserve release totaled 1,775,000 tons.
 
The spot market is weak with rare resource and falling price. The monthly average price for CC Index 3128B is 17,434 Yuan/ton, 1,003 Yuan down over the month. At the same time, import cotton price continued to increase and the import volume decreased over the month and on y-o-y level. In May, China imported cotton of 192,000 tons, at average price of 2,137 USD/ton.
 
Due to reduced reserve release, import cotton and spot transaction, the commercial carryover stock reduced to the lowest point in recent three years. According to CCA survey, national commercial carryover stock is approximately 193,000 tons, 14.2% less over the month and 45.9% less y-o-y.
 
Although the indexes showed recovering signs, the whole industry is still sluggish and the outlook is challenged by decreased cotton price. Domestic cotton demand still needs time to recover in the context of the current slow textile industry progress.

China Cotton Association


Must ReadView All

FDI in Vietnamese textile-garment projects on the rise

Apparel/Garments | On 24th Jun 2018

FDI in Vietnamese textile-garment projects on the rise

The European Union-Vietnam Free Trade Agreement and the Comprehensive ...

Courtesy: Alizilla

Apparel/Garments | On 24th Jun 2018

Alibaba Group sets up office in Kuala Lumpur

Strengthening its commitment to Malaysia, Alibaba Group has set up an ...

Bombay Dyeing plans to wind up Indonesian JV

Textiles | On 24th Jun 2018

Bombay Dyeing plans to wind up Indonesian JV

Bombay Dyeing & Manufacturing Co Ltd plans to wind up its loss making ...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search