Temperature and Precipitation Information

On November 22nd, NOAA reported the outlook for the temperature and precipitation probabilities for November 30th – December 6th. The maps are shown below. NOAA predicts temperatures to be below normal in the Southeastern part of the country but normal or above normal in cotton states such as Texas and California. In addition, NOAA forecasts precipitation across the Southeastern states to be normal or above normal, but the western cotton states are expected to experience below normal precipitation.

China Policy and Market Update

In September, China imported 965,915 bales (210,303 MT) of cotton, representing an increase of 48.26% month-on-month (m/m), and an increase of 152.52% year-on-year (y/y). The U.S. was ranked as the largest cotton supplier to China, followed by Australia and Brazil. Entering October, China’s textile industry operation is experiencing major recovery with more orders and increased operating rate, which is beyond the industry’s expectation. Besides the orders from overseas for the upcoming Thanksgiving and Christmas holidays and from domestic market stimulated by the online shopping festivals (November 11th and December 12th), the ongoing severe pandemic situation in other countries such as India also pushed more orders back to China, especially those short orders that needs quick supply chain coordination. For more information regarding the Chinese cotton market, textile industry, and policy updates, see the link below. Information provided by Yuan Associates.

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USDA & USTR Say China Has Met 71% of 2020 Phase One Ag Purchase Target

On October 23rd, the Office of the United States Trade Representative (USTR) and the United States Department of Agriculture (USDA) released an Interim Report on the Economic and Trade Agreement between the United States of America and the People’s Republic of China. The report states, “Using the best methodology, we have calculated that China has purchased approximately 71 percent of its target for 2020. They have purchased $23.6 billion in agricultural products so far this year. This is substantially more than the base year of 2017, and should end up being our best year ever in sales to China. It is still to be seen whether they meet their target but particularly given the COVID-19 effects on the global economy they are making substantial progress. It is worth noting that the Phase One Agreement did not go into effect until February 14, 2020, and March is the first full month of its effect. That means that we have seen seven months of agreement sales.” See full report below.

Report here.

China Textile Mills’ Operations See Slight Operation Rate Recovery in September

Cottonchina.org.cn, China’s leading cotton trade media outlet, has conducted a survey among over 100 textile mills to understand their operation and demand for cotton in September. Based on their findings, mills’ operating rate and orders continue to recover, and mills are expecting a better situation for the rest of the year. Here are the details for your reference. Provided by: Yuan Associates

More here.

House Democrats from Cotton States Write Speaker Pelosi Requesting Support for Cotton Merchandisers and Manufacturers in Addition to Producers

Fourteen House Democrats from cotton states signed on to a letter to Speaker Nancy Pelosi expressing the importance of including the entire cotton supply chain in the next relief package. This letter was led by Representative David Scott of Georgia’s 13th district and Representative TJ Cox of California’s 21st district.

Letter here.