Cotton rises sharply, with China reducing its planting acreage

YarnsandFibers News Bureau 2014-01-08 11:20:00 – New York

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.

There’s been a lot of talk about China changing its policy toward cotton, Ms. Johnson said.

China indicated last year that it would move away from its traditional stockpiling system, replacing it with a farmer subsidy system similar to that of the U.S.

Cotton futures’ gains were also likely driven by short-covering and technical signals, brokers and analysts said. Prices fell 1.4% in the previous week.

Some buying may have also been driven by traders positioning ahead of a U.S. Department of Agriculture report due Friday that will include a final assessment of production numbers for the previous growing season. However, the USDA’s December report states that cotton growers produced 13.1 million bales in the 2013 crop year

0 0 vote
Article Rating
Inline Feedbacks
View all comments

Market Intelligence

Ask for free sample Report

why us?
21 yrs


Fortune 500

Customer Base


dedicated team


Countries Served Worldwide


Register below to receive our newsletters with latest industry trends and news!

WeCreativez WhatsApp Support
Our support team is here to answer your questions via WhatsApp. Ask us anything!
? Hello