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Chinese cotton year-end stocks decline
Jan '11
As the world's largest consumer and importer of cotton, tight supply situation of cotton market in China became more apparent in 2010. According to the latest survey of National Cotton Market Monitoring System, China's 2010 cotton acreage was 75.682 million Mu (one hectare equals 15 Chinese Mu), recording a decrease of 1.1 percent from the previous year.

In addition, 2010 cotton production was adversely affected by some natural disasters, such as hypothermia during sowing period, continuous heavy rainfall during boll opening period, which had affected the cotton quality and yield. Cotton yield fell 4.4 percent to 84.0 kg/Mu, total output came to 6.36 million tons, registering a decrease of 5.5 percent from the previous year.

China's domestic cotton consumption reached 10.23 million tons in 2010; the gap between production and sales was 3.70 million tons, forming a huge gap between supply and demand.

Data showed that China's ending stocks were 2.879 million tons in 2010, representing a reduction of 440,000 tons from the previous year, stock and consumption ratio continued to decline to 44 percent.

It is can be said that China is still in short supply of domestic cotton, overall situation of tight supply can not be changed within a short period.

Fibre2fashion News Desk - China

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