Commodities Buzz: USDA Sees Massive Drop In Global Cotton Production, Chinese Acreage Set To Fall Near Historical Low
Chinese cotton sowings are expected to will drop to their lowest in 56 years.
The USDepartment of Agriculture, in its first global cotton supply and demand estimates for2015-16, forecast sharply lower world production, seen falling by 8 million (m) bales to111.25 m bales – down 6.70%.
Output in China, until this season the world's topproducer, will drop by 3 m bales to a 12-year low of 27 m bales - 1.0m bales less thanoutlined in an initial estimate made in February.
The estimated area of 3.70 m hectares isdown 16% from last year and is the lowest area since 1949.
China’s new subsidiarypolicy has resulted in lower profits for cotton farmers, who have responded by shiftingfrom cotton to other crops, such as rice and corn that offer higher returns or receivegreater government support.
Chinese cotton sowings are expected to will drop to their lowest in 56 years.
The USDepartment of Agriculture, in its first global cotton supply and demand estimates for2015-16, forecast sharply lower world production, seen falling by 8 million (m) bales to111.25 m bales – down 6.70%.
Output in China, until this season the world's topproducer, will drop by 3 m bales to a 12-year low of 27 m bales - 1.0m bales less thanoutlined in an initial estimate made in February.
The estimated area of 3.70 m hectares isdown 16% from last year and is the lowest area since 1949.
China’s new subsidiarypolicy has resulted in lower profits for cotton farmers, who have responded by shiftingfrom cotton to other crops, such as rice and corn that offer higher returns or receivegreater government support.
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