Related Keywords: China worlds top cotton buyer, fall to five year low, import limitations, International cotton advisory committee, off load huge cotton reserves, policy of Chinese government auctions, production in China to fall, set to pare its imports to the minimum levels, shrink cotton stocks
The International Cotton Advisory Committee forecast that the policy of Chinese government auctions to off load its huge cotton reserves, and import limitations, will shrink Chinese cotton stocks by 7% in 2015-16, and a further 10% in 2016-17. Chinese cotton stocks will fall to a five-year low.
The sharp decline in Chinese imports, and falling domestic production, will help draw down stocks even as Chinese demand falls.
According to the US Department of Agriculture forecast China's cotton stocks to fall by 6 percent in 2015-16, to 13.9m tones.
