As the US Department of Agriculture (USDA) sees it, the greatest uncertainty for US commodities trade with China lies in the cotton fields. “Right now, China holds a very large proportion of cotton stocks,” chairperson of commodity forecasts for the USDA’s World Agricultural Outlook Board Gerald Bange told China Daily. “One thing we’re looking at is what China is doing with regard to cotton in terms of their cotton imports and cotton stocks relative to the world…Full-text article: China Daily Sep 2013

Key point

  • According to the article, within the next few months, China may change its policy of purchasing domestic cotton at above-market prices, to simply subsidizing farmers
  • The full USDA report can be seen here

ChinaAg Comment

  • In 2011, China produced 13.2 million metric tons (MTs) of cottonseed, 6.5 million MTs of cotton (lint), 1.5 million MTs of cottonseed oil, 127,000 MTs of flax fiber, 124,000 MTs of ramie, 43,000 MTs of jute, and 14,600 MTs of sisal. In percentage terms, China produced 25% of the world’s cotton (lint) and 30% of the globe’s cottonseed oil

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