Cotton rises sharply, with China reducing its planting acreage

China, the world’s largest producer of the fiber decision to reduce planting acreage by nearly 9% in 2014 as resulted in sharp rise of cotton futures in early trade Tuesday.

Cotton for March delivery rose 1 cent, or 1.2%, to 84.67 cents a pound. Futures had risen as much as 1.7% in overnight trading.

The China Cotton Association said that plantings would decline to an estimated 4.2 million hectares for the third year in a row. Sharon Johnson, a senior cotton specialist at KCG Futures in Atlanta, said that the resulting yields from China could reach their lowest level since 2005.

There’s been a lot of talk about China changing its policy toward cotton, Ms. Johnson said.

China indicated last year that it would move away from its traditional stockpiling system, replacing it with a farmer subsidy system similar to that of the U.S.

Cotton futures’ gains were also likely driven by short-covering and technical signals, brokers and analysts said. Prices fell 1.4% in the previous week.

Some buying may have also been driven by traders positioning ahead of a U.S. Department of Agriculture report due Friday that will include a final assessment of production numbers for the previous growing season. However, the USDA’s December report states that cotton growers produced 13.1 million bales in the 2013 crop year

Recent Posts

Mellowdrama launches repurposed fabric waste

Mellowdrama has launched its latest ready-to-wear collection, ‘AlterEgo,’ using repurposed fabric waste focusing on themes of individuality and self-expression.

3 days ago

DRDO Partners to advance defence textile technologies

DRDO, Indian Institute of Technology Delhi, and 10 companies have signed agreements to develop and produce advanced textile-based products for…

3 days ago

Milliken & Company offers non-PFAS turnout gear fabrics

Milliken & Company has announced that it is the first textile manufacturer to provide non-PFAS materials for all three layers…

3 days ago

Evaya unveils GOTS-certified sleep product line

Evaya Organics proudly introduces a line of sleep products designed to promote better sleep while prioritizing health and environmental sustainability.

4 days ago

Benin’s organic cotton initiative moves into second phase

An initiative in Benin is helping small-scale farmers transition to organic cotton farming under the Cotton made in Africa Organic…

4 days ago

Lenzing, CPL and Oniverse launch biobased acetic acid for dyeing

Lenzing has joined forces with CPL Prodotti Chimici and Oniverse to introduce biobased acetic acid as a sustainable alternative for…

5 days ago