In a move that could add more pressure to global cotton prices, China has announced that it will cut 2015 cotton import quotas to the minimum 894,000 tons required under its commitments to the World Trade Organization.
The current trading range continues, as the market analyzes the impact of flooding in the U.S., continued dryness in Australia and the first initial official announcement by the Chinese government with respect to its new cotton policy.
The cotton market has been shrouded in plenty of uncertainty lately, which continues to drive its meandering sideways movement.
Low prices and larger-than-anticipated production cuts will leave Brazil’s cotton export numbers well below forecast, and could dash the country’s status as the world’s third largest cotton shipper.
According to the USDA 2014 Cotton Varieties Planted report, Deltapine was the most popular cottonseed brand planted in the U.S. this season, with PhytoGen’s PHY 499 WRF ranked as the top planted variety.
Based on information contained in USDA’s September World Agricultural Supply and Demand Estimates Report, U.S. cotton production and exports for 2014 will both be down over earlier projections.
Five honorees have been elected to the first class of Cotton Incorporated’s newly-established Cotton Research and Promotion Program Hall of Fame.
Ongoing anticipation of the Chinese government’s announcement regarding price supports for the 2014 crop has driven cotton prices back near the bottom of the current trading range.
Bayer CropScience has opened its newest cotton research facility – a $17 million, 76,000-square foot state-of-the-art greenhouse and headhouse addition to its existing site at Agricenter International in Memphis, TN.
Anthony Tancredi of Louis Dreyfus Commodities says the most important thing for anyone in the market to know is what China’s cotton policy is. The problem: no one knows – or is sharing – the policy details.