China: Cotton and Products Update

Cotton imports are forecast at 2.6 million metric tons (MMT) in marketing year (MY) 21/22. U.S. cotton exports to China surged to 1.2 MMT in the first 11 months of MY20/21, up from the 0.47 MMT in MY19/20, pushing the U.S. share of China’s cotton imports to 45 percent. Demand from the domestic market and increased orders from overseas are driving factors that led to the new China cotton consumption forecast of 8.7 MMT in MY21/22, up from the estimated 8.6 MMT in MY20/21. Based on lower acreage in the Yellow River and the Yangtze River regions, China’s MY21/22 cotton production is forecast at 5.9 MMT, down from the estimated 6.4 MMT in MY20/21. Note: The estimates and forecasts are developed by FAS China and do not represent official USDA forecasts.