China Cotton Situation Monthly Report (May, 2010)
Source:China Cotton Association          Date: 26/May/2010
In April, the National Development and Reform Commission, Ministry of Railways make more efforts to transport Xinjiang cotton. In the last ten days of April, the number of wagons from Xinjiang increase significantly, it is expected that all the Xinjiang cotton can be shipped before the new season. According to the monitor by Warehouse Branch of China Cotton Association, the cumulative shipments of Xinjiang cotton in April are 284,000 tons, up by 66% from the previous month. Xinjiang cotton transfering to inland faster add the resouses to meet the need of textile enterprises, the cotton price risng slow down. China Cotton Index (CC Index328) in April averaged 16,283 yuan / ton, up by 4.6% from last month.

Textile and garment exports continued improving. In April, export growth of textiles and clothing have turned to positive, in particular the declining trend in garment exports has stopped. In that month total exports 14.5 billion U.S. dollars, up by 16.4%. Textile production continued rapid growth, yarn output 2.26 million tons that month, an increase of 16.6%. The gap between cotton production and demand this year expand, so the imports increase significantly. India cotton moratorium export led to international cotton prices rising, but the step less than domestic, in April the cotton price difference between domestic and international expand. In that month imports cotton 324,000 tons, with basically the same as last month, the average import price of 1755 U.S. dollars / ton, a new record high.

In April, seed cotton acquisition of the Yellow River basic end. Cotton farmers are starting to seed, national cotton planting area is basically stable. Since April, all national except South Xinjiang region meet low temperature, few sunshine, over rainfall, some areas suffered high winds and dust weather disasters, most of cotton sowing delayed, the growth of cotton are effected. But at the end of the month, weather turn to fine and the temperature rise, the farmers speed to sow, the country planting progress by the end of April is 93%.
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