US cotton exports to Asia jump 70%
11/04/2013
Asia is particularly dependent upon imports because domestic production only meets about 5% of consumption. Mills in China, for example, are seeking alternative sources to high priced domestic yarn, which is now less competitive due to the government’s cotton stockpiling policy.
The US market share has recovered significantly from last year, when Australia and Brazil were aggressively shipping record crops but where production has now declined.
USDA said outstanding sales suggest the rapid growth of US exports will continue through the rest of the year.
The volume of cotton exported from the US has increased by 250,000 bales to 13 million for 2012/1013. India exported 1.5 million bales more than the year before, 7 million, and Australia exported 200,000 more bales - 4.8 million.
However, Brazil exported 100,000 fewer bales (4.5 million) and Mexico 100,000 fewer (250,000) due to reduced exportable supplies.
Of the world’s major cotton importers, China has raised its requirements by 1.5 million bales to 16.5 million for the period. India imported 200,000 more bales (1.7 million) than last year as escalating exports tighten domestic supplies. Vietnam took 150,000 more bales (2.3 million) as demand grew for textile products. Mexico imported 100,000 fewer bales (1.1 million) as use shifts from imports to domestic supply.
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