TextTable

March 2006 Edition:

U.S. Share in China Declines

The United States has traditionally been the largest supplier of cotton to China, with a 52 percent share of China’s cotton imports since January 1995. However, since the beginning of the 2005/06 marketing year, the US share has averaged only 40 percent and has declined steadily during that period, reaching only 25 percent in January 2006. Nearly all other competitors have seen gains in market share since the beginning of the marketing year. The most notable are Africa, Australia, and India whose combined share so far in 2005/06 is 42 percent compared to 28 percent since the beginning of 1995. One factor in this change is that exportable supplies in the rest of the world outside of China in 2004/05 and 2005/06 are more than 25 percent higher than any time in the preceding 15 years.

Australia’s large crops of the early 2000’s coincided with a period that saw very low imports by China and very strong demand in Indonesia. While China’s import demand increased in late 2003 and dramatically in early 2004, Australia was faced with significantly smaller crops. The larger Australian crops in 04/05 and 05/06 are well placed to compete with the US in China.

African cotton production was stagnant in the early and mid 1990’s as China’s import demand increased, while demand in traditional African markets such as Europe remained firm. As demand in traditional markets began to decline in the late 1990’s so did import demand in China; however, now with continued declining demand in other markets, exports to China have expanded.

India’s shift from being a net importer to a net exporter and the decline in demand in India’s traditional export markets of Japan and Europe, have been a major factor in their growth in share in China.

World and U.S. Cotton Situation and Outlook
Marketing Years 2003/04, 2004/2005, and 2005/06
1,000 480-Lb. Bales
	World				U.S.
	2003/04	2004/2005	2005/2006	% Change 04/05 - 05/06	2003/04	2004/2005	2005/2006	% Change 04/05 - 05/06
Production	95,262	120,377	113,341	-5.8	18,255	23,251	23,719	2.0
Imports	33,900	33,144	42,826	29.2	45	29	30	3.4
Use	97,870	108,747	116,149	6.8	6,221	6,693	5,900	-11.8
Exports	33,250	34,720	42,245	21.7	13,758	14,409	16,800	16.6
Ending Stocks	43,062	54,197	53,275	-1.7	3,506	5,538	6,600	19.2

Download Cotton Supply and Demand Database {.csv}

Download Cotton Circular {.pdf}

TABLE OF CONTENTS

Statistical tables contained in this circular may be viewed in Adobe Acrobat format ® {.pdf}.

Tables

Summary of Changes (1,000 480-lb. bales) {.pdf}

Table 1: World Cotton Supply, Use and Trade, 2000/2001-2005/2006 (1,000 metric tons) {.pdf}

Table 2: World Cotton Supply, Use and Trade, 2000/2001-2005/2006 (1,000 480-lb. bales) {.pdf}

Table 3: FY 2002 GSM-102 and Supplier Credit Programs {.pdf}

Table 4: Area, Yield, and Production by Country 2004/2005-2005/2006 {.pdf}

Table 5: Cotton Supply & Distribution by Country 2005/2006 (1,000 480-lb. bales) {.pdf}

Table 5-A: Cotton Supply & Distribution by Country 2005/2006 (1,000 metric tons) {.pdf}

Table 6: Cotton Supply & Distribution by Country 2004/2005 (1,000 480-lb. bales) {.pdf}

Table 6-A: Cotton Supply & Distribution by Country, 2004/2005 (1,000 metric tons) {.pdf}

Table 7: Export Sales Summary {.pdf}

Table 8: Northern European Cotton and Adjusted World Price {.pdf}

Table 9: World Cotton Production, Yield, Supply, and Utilization {.pdf}

Table 10: United States Cotton Production, Yield, Supply, and Utilization {.pdf}

Table 11: Foreign Cotton Production, Yield, Supply, and Utilization {.pdf}

Statistical tables are available in Adobe Acrobat. You may need to GET the Acrobat reader.

Last modified: Tuesday, August 30, 2005