MONDAY 2016-MAR 28:
The U.S. was ranked as the second largest cotton supplier to China in February. By the end of February, Chinese cotton imports totaled 151,812 MT, a decline of 52.61 percent y/y. U.S. cotton was ranked as the fourth with a total quantity of 22,073 MT, accounting for 14.54 percent of total imports.
According to the China Cotton Association (CCA)’s latest survey, the intended plantation acreage for 2016 increased slightly compared to the previous survey done by CCA of this type due to the second group of subsidies. In mid-March, the National Development and Reform Commission (NDRC) published the 2016 target price for Xinjiang cotton which is RMB 18,600 per MT, RMB 500 lower than in 2015.
During the CCA Cotton Situation Analysis Meeting in March, relevant government agencies expressed that the auction of reserved cotton will be conducted on a regular basis. The volume to be auctioned will be based on the market situation. The first auction this year will be scheduled in late April. Considering that enterprises need high quality cotton, the imported cotton in the reserve will be auctioned on the market in the first place.
For more details, please click on the link below to view the latest China Cotton Market Report.