China: Cotton and Products Update
Despite a forecast yield gain in Xinjiang, given the continuing nationwide decline in cotton acreage, Post’s forecast for China’s MY16/17 cotton production is 4.65 million metric tons (MMT). This is lower than the MY15/16 estimate of 4.83 MMT. MY16/17 cotton use is forecast up to 7.8 MMT mainly due to a forecast decline in yarn imports and steady growth in domestic demand for textile and apparel products. Given that China is scheduled to restart selling state cotton reserves beginning March 2017, China is unlikely to add additional import quotas. Correspondingly, the forecast for MY16/17 cotton imports remain low at 980,000 tons.
