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Cotton planting area projected to fall by wide margin
Mar '09
According to China's cotton planting estimates for the new cotton season beginning in the second half of 2009, the planting area is expected to drop by as high as 20 percent. In the current ongoing cotton season, cotton cultivation area stood at 87.89 million mu (1 hectare=15 mu).

This indicates that the total area under cotton cultivation will fall to 70 million mu. The estimates do not include opinion of around 4.4 percent farmers, but who cultivate 5 percent of the cotton planted area, which is equivalent to 4.40 million mu. This small percentage of farmers can still more tilt the area cultivation tables.

According to statistics, as of February 27, the third state reserve procurement has purchased 1,025,650 tons and from the beginning of the procurement programme in October last year, the total state purchases of cotton amount to 2,244,350 tons.

Of the total procurement, Inland has accumulated 989,050 tons of state cotton reserve and Xinjiang has completed 1,255,300 tons. The country may enhance export rebate rates of textiles and garments which augurs well for the industry and may propel prices of cotton to high levels.

According to more projections and estimates, cotton price is expected to still hover in the range of around 12,000 Yuan per ton, with a plus-minus range of about 500 Yuan. The overall market is expected to meet resistance when going up and receive support when prices decline or move southwards.

Fibre2fashion News Desk - China

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