China Needs To Import 800 Thousand Tons Of Cotton For Storage In 2011/12.

China's 2011/12 year (beginning in September) or the need to import 800 thousand tons of cotton to supplement

Futures Company cotton analyst said, China has imported a lot of cotton, so it is impossible to purchase again, 70% of the new cotton has been ordered.

Increasing reserves will strengthen the government

It also said that the cotton price below $1 per pound would be very attractive.

China is the largest cotton producing country in the world, with an annual output of 600-750 tons, and the booming domestic textile industry makes it the largest cotton consumer and importer in the world.

However, cotton production is expected to be high this year, and demand is expected to decline, which is threatening China's exports because of the global recession.

China's cotton is mainly exported to the United States and Europe.

The growth of China's cotton imports will benefit its largest supplier, the US and Australia.

Since 2010, two cotton exports have increased by 60%, and China's demand is the main.

China's cotton demand was reflected in the weekly report released by the US Department of agriculture last week.

USDA said last week that China imported 996100 bags of US cotton, the largest US cotton imports in eight years.

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In recent years, the cotton consumption of cotton factories in China is far greater than that of output. This situation has led to a continuous decline in China's cotton inventories and rising imports, resulting in tight global supply.

In the future, Chinese farmers will choose to grow more lucrative grains to replace cotton, which is bound to make the supply situation more intense.

Analysts expect cotton planting area to grow next year in China.

Another Futures Company analyst believes that if cotton production is reduced, the government must ensure that there are sufficient reserves to curb price fluctuations. It is estimated that the government may plan to store 3 million tons of cotton.

According to information, China has imported 20-30 tons of cotton to replenish its inventory so far in 2011.

According to the report published by China's cotton network, China's total imports of cotton were 2 million 200 thousand tons in the first ten months of this year, a decrease of 2.4% from the same period.

In October 27th, the China Cotton Storage Corporation said that the company harvested 65960 tons of cotton from domestic cotton growers, with an average price of 19493 yuan per ton (US $3071).

As of Tuesday, the government acquired a total of 506840 tons of cotton.

According to the above consulting company analysts, from the scale of the government procurement and storage plan, the central storage cotton company can store 1 million tons of cotton before the end of the storage and withdrawal in March.

However, a senior industry analyst said that if overseas prices fell to below US $1 again, China could still import 70-80 million tons of cotton in 2011/2012.