Chinese Farmers Cut Hopes For Cotton Imports

China said on Monday that it would reduce the volume of cotton imports to 894 thousand tons (4 million 100 thousand packs) next year, which is the minimum tariff import quota promised to join WTO [micro-blog].

The US government predicted that China's imports of 2014/15 crop will be 8 million packs per year, and that the planned import volume of China will be almost half of the estimated value of the US government. The 2014/15 crop year began in August 1st. Affected by this news, the US ICE cotton prices fell.

China is still likely to announce the lifting of the whole. Import volume New measures. But market participants say the plan will undermine China's interest in foreign cotton and encourage domestic cotton producers to use domestic cotton.

Risk Analytics consultant Louis Rose, independent cotton trader and consulting agency, said cotton CTH4 in March could fall to 50 cents. The contract was awarded 62.48 cents per pound on Tuesday.

Over the past three years, the stock of China's reserve cotton has been enough to supply domestic textile mills for two years.

Cotton prices have fallen by 25% since May because of concerns over China's new policy, which has fallen below the profit and loss balance for most US households.

Since 1975, Jerome Vick, a farmer who grew cotton in North Carolina, says he may not grow cotton next year, the first time he has stopped planting for nearly more than 20 years.

Wait until Peasant household Began marketing two years the largest production of the United States cotton Prices may pick up slightly.

But cotton prices are hard to predict. Before May, cotton prices had never been below 78 cents since January 2013, and even 96 cents in March.

Vick said that although good weather and yield could offset some price declines, the cost of planting cotton was 70-75 cents per pound. His sweet potato and sweet potato prices are better.