Cotton acreage & production lower than expected

October 01, 2009 - Hong Kong

Under the influence of the financial crisis and the low prices that cotton commanded in the initial period of the last cotton season, national cotton acreage in the new cotton season 2009-10 in China has reduced by about 10 million Mu (one hectare = 15 Chinese Mu).

The survey from China Cotton Association estimates that national cotton area is 77.78 million mu, down 11.8 percent compared with its previous estimate.

In early and mid July, overall national weather conditions were favorable; cotton development was better than the same period last year. Therefore production in most growing areas was expected to increase.

However, in late July to August, some cotton areas met long time overcast and rain or hot dry weather, leading to increased boll loss and rot, pre-harvest situation in some areas has reversed, cotton yield and quality have been affected.

According to projection of China Cotton Association in August, China’s total output of cotton is estimated to be 702 million tons, a reduction of 8 million tons compared with July forecast, down 9.9 percent compared with last year.

After mid-August, some areas began to purchase seed cotton in small quantity at the price of 5.6 Yuan per kg. But cotton farmers are holding on to their stocks on expectations of higher price, which they hope to be above 6 Yuan per kg.