China: Cotton and Products Annual

Commodities

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China’s marketing year (MY) 19/20 cotton production is forecast at 6 million metric tons (MMT), compared to an estimated 6.07 MMT in MY18/19. The basically flat production is based on a minimal decrease in acreage from the previous year. Imports are forecast to increase to 2 MMT in MY19/20 from an estimated 1.8 MMT in MY18/19, due to growing consumption and insufficient domestic production. Imports of U.S. cotton continue to be constrained by the additional 25 percent tariff that China implemented in July 2018. In the first half of MY18/19 (August-January), U.S. cotton exports to China reached 119,000 tons, or 11.2 percent of China’s total import volume of 1.07 MMT. In contrast, the U.S. market share in the previous marketing year was 45 percent. Australia and Brazil increased their market shares during the first half of MY18/19, to 32 and 27 percent, respectively.  

China: Cotton and Products Annual