November 21, 2013
Lower crop in China leads to gains in cotton prices
China's cotton crop for 2013 is forecast to be 6.68 million tonnes, a drop of 12.3% on-year, according to the survey by China National Cotton Reserves Corporation (CNCRC).
CNCRC's forecast is less than the 7.08 million tonnes estimated by USDA on November 8. The survey cites the early frosts and snows in the top growing region as the reason for the decrease in yield.
Amid the news of a shorter crop in China, the world's top grower and importer, cotton prices on New York's Intercontinental Exchange (ICE) rose to a two-week high on November 20, while the march cotton contract on ICE Futures climbed by 0.7%.