News Tags

Related Keywords: China, cotton, planting acreage, USDA report

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.

Related Keywords: China, top importer, Turkey, US cotton

Turkey coming out as top importer of US cotton, as Turkey’s interest in exported cotton has increased due to a revival of its textile industry, which is increasing due to sales to Europe, as well as the fact the country is expected to grow fewer bales this year due to lower plantings. Also as Chinese buyers have lowered their import of raw cotton for lower-taxed yarn.

Turkey emerges as the number one customer for raw cotton exported from the United States, overtaking China.