Since April, the spring cotton sowing has been started in an all-round way. Most of cotton region meet a high temperature, cotton emerged earlier than the same period last year. According to the last statistics of China Cotton Association (CCA), the sown area this year will be 81 million mu, equal to last year.
In 2006/07 season, the output of China cotton is 6.73 million tons and 96% has already been purchased by the end of April. In April, Yarn output keep increasing, fabrics and clothes export go up by a wide margin, cotton import decrease from last month. The price of domestic cotton fall slightly, import quota under the sliding scale duty has been issued successively.
??The Supply
1, 96% of new cotton has been procured. According to the statistics of China Cotton Association, 6.454 million tons (96% of the total output) ginned cotton have been procured by the end of April in whole nation, increase by 22.9% compared with the same period of last year. Among them, Xinjiang purchases 2.182 million tons, accounts for 33.8% of the whole nation.
2, The price of the domestic cotton drops slightly. Some textile enterprises reflect that the storage of raw materials is comparatively sufficient at present and the finished-products overstock severely, the fund deficiency problem is still outstanding relatively.
The price of the domestic cotton drops slightly continuously in April. It is comparatively steady at beginning of month and the end of the month, decrease relatively big in middle of the month. The minimum value of China Cotton Index (CCIndex) of Type 328 grades is 12973 yuan per ton, the supreme value 13066 yuan per ton and the average price 13019 yuan per ton that goes down 33 yuan per ton or 0.25% from March, decrease by 1084 yuan or 7.7% compared with the same period of last year.
3, The cotton import decreased compared with last month, the price of import cotton continue dropping.
The cotton import volume goes up by a wide margin in March, but drops once again in April. In April, the cotton import volume is 215,000 tons, decrease by 45,000 tons or 17% compared with March; reduce by 275,500 tons or 56% compared with the same period last year. In January - April 2007, cumulative 723,000 tons cotton have been imported, decrease by 55% compared with the same period last year. In 2006 cotton season (September of 2006 - April of 2007), cumulative 1.3378 million tons cotton have been imported, decrease by 50% compared with the same term in 2005.
In April, the price of import cotton goes down finally; the fluctuating range and frequency are more than last month. On April 30, China imports cotton price index (FC Index M) is 59.01 cents per pound, decrease by 1.77 cents from April 2. Average price in April is 59.84 cents per pound. Transfer to RMB is 11848 yuan per ton at 1% tariff which is lower 1171 yuan than Type 328 grade of domestic cotton, 13117 yuan per ton at the sliding duty tariff which is higher 98 yuan than 328 grade of domestic cotton.
??The Demand
1, Yarn output keeps fast acceleration in April.
According to State Statistics Bureau, in April, the yarn output increases by 21.2% year-on-year to 1.61 million tons. In the first four month of 2007, the cumulative yarn output is 5.78 million tons which increases by 20.4% compared with the same period last year.
The cumulative yarn output in 2006 cotton season (September 2006 - April 2007) is 12.17 million tons totally, increase by 21.2% year-on-year.
2, The exports of textile and apparel rebound greatly. The exports of textile and apparel has dropped by a wide margin in March, but rebound in April. According to the data from General Administration of Customs, exports of textile and apparel during April are 12.83 billion U.S. dollar, up 60.9% from last month, and up 15.2% compared with the same period last year. Among them, yarn fabric and products are 4.85 billion U.S. dollar; clothes and apparel attachment are 7.98billion U.S. dollar.
In the first four month of 2007, the cumulative yarn fabric and products export are 44.19 billion tons which increases by 14.8% compared with the same period last year; clothes and apparel attachment export are 28.21 billion U.S. dollar which increases by 17.4%.
??The Mac-policy
The People's Bank of China (PBC) decided to raise the RMB reserve requirement ratio of depository financial institutions by 0.5 percentage points twice in April which is the 4th time since this year, 7th time since last year, for the purpose to strengthen the management of excess liquidity. And prevent monetary credit from increasing too fast.
The appreciation of RMB exchange rate accelerates, hit new peak again and again, the RMB exchange rate intermediate price has already broken 7.70.
??Cotton spring sowing make a good progress, the planting area is expected to be steady basically.
By the end of April, the spring sowing is over in most of cotton region. Because the high temperature during sowing, the spring planting progress is faster than the same period last year. The cotton emerges smoothly, and grows greatly.
According to the last statistics of China Cotton Association (CCA), the sown area this year will be 81 million mu, equal to last year. The State Statistics Bureau抯 data is 82.21 million mu, increases by 1.3% as compared to last year, the Ministry of Agriculture82 million mu.
In April, most of cotton region抯 temperature is equal to or higher than the same period of earlier year, and the precipitation is not enough. In the west of the Northwest, the light and the temperature condition is pretty well, precipitation is more than the earlier years, the drought is relieved, so cotton emerge smoothly. In North China and Huanghuai region, some area抯 precipitation is less 20-90% than normal year, temperature high, soil moisture content drops constantly, the drought is unfavorable to cotton emerge. In the most of east and middle of North China and east of Huanghuai region, the soil moisture content basically suitable, sowing is smooth. In Jianghuai and Jianghan, the light and the temperature are sufficient and helpful to the cotton sowing. Since the last ten days of April, the Yellow River valley meet continuously high temperature which is unfavorably to cotton emerges and dead seedling increases. Although being reseed, the cotton does not emerge well because of lack water.
