US cotton production to drop 26%
06/03/2013
China, the world’s largest cotton producer and consumer, is forecast to produce 7.3 million tons in 2012-13, estimated to be 23% of global production. Over the same period it will consume 8.3 million tons or 36% of the world’s cotton mill use. It will also continue to hold eight million tons of cotton, or 47% of global stock.
It is the second year China has implemented a provisional cotton reserve policy to protect its farmers, stabilise the cotton market and encourage agricultural production. However, with a stocks-to-use ratio of 0.97, domestic cotton consumption is almost secured, indicating the cotton reserve build-up could slow in coming months.
Share this story:
