“We will have to turn to U.S. cotton after India’s decision to halt
exports, but that’s still not enough,” Yuan Renqing, analyst at Xinhu
Futures com., said by phone from Qingdao”
.The deficit will be about 1.4 million bales before the new crop
comes onto the market, the agency said in a report, citing the China
National Cotton Reserves Corp. The deficit calculation has taken into
consideration the quantity China needs to import and the available
global supply, it said .
.India, the world’s second-largest cotton grower, halted exports last
week to boost domestic supplies and cool prices. China’s economic
growth of 11.9 percent in the first quarter is spurring textile
consumption while cotton output last year shrank on reduced planting .
.Chinese consumption may outstrip available supply by 16 million
bales in the marketing year ending August 31, and supply will remain
tight next year, Mei Yong, an analyst at state- backed CNCotton.com
said April 16. China’s cotton year runs from September to August .
.Demand is recovering as China’s cotton yarn output jumped 20 percent
in the first quarter as factories increased production on improving
exports, the China Cotton Association said on April 23 .
Date:5/9/2010
Source:www.commercialappeal.com