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US 2013 cotton production down due to poor weather
April 1, 2014 US 2013 cotton production down due to poor weather A day after reaching a two-year high, US cotton prices fell nearly 3% while cotton for May delivery fell US$0.025 or 2.6% to US$0.92 a pound. The price of cotton hit a two-year high after the USDA reported a steep drop in cotton production in 2013 because of poor weather. US cotton production was 12.87 million bales last year, versus the 17.29 million bales the year before. The US is not the world's largest cotton producer but it is by far the world's largest exporter of the fibre, selling the commodity to countries like China, Turkey and Bangladesh to fuel those countries' clothing industries. China itself imported more than 11 million bales of cotton in 2013, according to data from the National Cotton Council. In other agricultural commodities, May wheat fell US$0.115, or 1.6%, to US$256 per tonne and corn fell US$0.02, or 0.4%, to US$191 per tonne. Soy rose US$0.12, or 0.8%, to US$529 per tonne.
Tuesday, April 1, 2014
China to speed up sale of state grain and cotton reserves
March 18, 2014 China to speed up sale of state grain and cotton reserves In order to ease the bank's mounting debts, the Agricultural Development Bank of China has urged Beijing to speed up the sale of its state grain and cotton reserves, which are now at record high levels. The bank, which is one of the country's three policy lenders, provides the financing that allows big state firms to stockpile farm products, including grains, cotton and sugar - a key part of China's policy to boost rural incomes. Beijing's stockpiling policy distorts the domestic market by setting artificially high prices for grains and cotton, encouraging buyers to turn to cheaper imports, the bank's president Zheng Hui said. The policy also encourages smuggling as buyers and suppliers try to get round China's strict import tariff and quota system, he said. As the government's expensive stockpiles expand, the bank has been put under "unprecedented pressure and difficulty" when it comes to capital flows and management, Zheng added
Tuesday, March 18, 2014
Nuziveedu Seeds opens cottonseed delinting, processing plant in Maharashtra, India
February 5, 2014 Nuziveedu Seeds opens cottonseed delinting, processing plant in Maharashtra, India Nuziveedu Seeds Ltd (NSL) has inaugurated a cottonseed delinting and processing plant near Aurangabad in Maharashtra, India. "The plant has integrated cotton delinting, processing and packaging facilities spread across 24 acres. It has cotton delinting capacity of three tonnes of seeds per hour and processing capacity of nine tonnes per hour," the company said in a statement. All impurities are removed from the cottonseed in delinting to prepare it for processing. Built at a cost of INR100 crore (US$16 million), the new plant has a storage space of 250,000 square feet and drying platforms of 35,000 square feet. NSL operates the highest number of processing plants in 17 locations across the country. Maharashtra's agriculture minister, Radhakrishna Vikhe Patil, inaugurated the plant in the presence of NSL Group managing director and chairman, Mandava Prabhakar Rao, the statement adde
Wednesday, February 5, 2014
China to discard cotton, soy stockpiling in 2014
January 21, 2014 China to discard cotton, soy stockpiling in 2014 China will scrap its controversial scheme to stockpile cotton and soy in 2014. The country will also implement direct subsidies for farmers, which will be conducted at trial level. The announcement is the first official confirmation that the changes will come in 2014, although market participants remain uncertain about how the move will pan out as the document lacks specific details on timing, as well as on the structure and size of subsidies. The shift had been widely anticipated after several years of stockpiling failed to encourage an increase in cotton and soy planting by farmers while also pushing domestic prices well above international markets, stimulating more imports. Global cotton prices, which climbed around 12% in 2013, may come under pressure from the change as it could free up more locally grown cotton, denting China's demand for imported fibre. The stockpiling of domestic supplies is expected by the end of July to re
Tuesday, January 21, 2014
US research shows reduction on insecticide use to cotton
January 14, 2014 US research shows reduction on insecticide use to cotton USDA scientists conducted research focused on a major threat to cotton in the south western US could soon help growers cut back on insecticide use. Growers in the Southwest often spray insecticides to control western tarnished plant bugs (Lygus hesperus). But before they do, they will walk through their fields waving hand-held nets and count the number of L. hesperus they capture. They decide to spray based on capture thresholds that vary from one region to the next. Studies by USDA Agricultural Research Service (ARS) scientists Dale Spurgeon and W. Rodney Cooper show that these "sweepnet" survey results can be misinterpreted, and that important factors in determining when to spray-such as the age of the insects and the growth stage of the cotton-are often overlooked. Spurgeon is based at the US Arid-Land Agricultural Research Centre in Maricopa, Arizona and Cooper is with the Yakima Agricultural Research Laboratory in Wapat
Tuesday, January 14, 2014
China lowers forecast of cotton output for 2013
December 11, 2013 China lowers forecast of cotton output for 2013 According to the Ministry of Agriculture's estimate, China's cotton output for 2013 would drop to 6.3 million tonnes, a decrease of 540,000 tonnes from last year. Vice president of China Cotton Association, Lu Huaiyu, said that production was affected by cold weather during the planting season and heavy rainfalls from June to August in major producing regions, including Hunan, Jiangsu and Anhui. In addition, higher government subsidies for grains pushed farmers to plant more rice and wheat, resulting in the reduction in planting acreage for cotton. Areas planted for the crop decreased by 280,000 hectares to 4.40 million hectares this year.
Wednesday, December 11, 2013
Taiwan investigates surge in cottonseed meal imports
November 1, 2013 Taiwan investigates surge in cottonseed meal imports Taiwan's Council of Agriculture (COA) released the preliminary results of an investigation into the use of cottonseed meal on October 26. The investigation into local factories reveals that the increase in cottonseed meal import can be attributed to three feed manufacturers and one fertiliser importer. According to the COA's probe, only 150kg of cottonseed meal was imported to Taiwan in 2011, which was mainly for scientific use; the amount subsequently jumped to 5,500 tonnes in 2012 and 3,550 tonnes in the first eight months of 2013, the majority of which was used for animal feed and growth substrate in mushroom cultivation bags. This is mainly because of the good harvest in Australia last year, which resulted in cheaper prices and enticed feed millers to replace expensive soymeal or other protein ingredients, COA added. The investigation follows a report by Taipei Municipal Wanfang Hospital psychiatrist Billy Pan, who pointed ou
Friday, November 1, 2013
Taiwan's cottonseed meal imports increase
October 28, 2013 Taiwan's cottonseed meal imports increase Taiwan's import of cottonseed meal, used mainly for scientific experiments in 2011, was about 150 kilogrammes and rose to 5,500 tonnes in 2012 and 3,500 tonnes in 2013, used for animal feed and media substance for bulk-bag-harvested fungi. This is according to Taiwan's Council of Agriculture's (COA). COA Deputy Director Huang Guo-ching said that in 2011 there were 5,109 tonnes of cottonseed meal imported from Australia, 432 tonnes imported from India and 19 tonnes imported from China. In 2012, 2,625 tonnes were imported from Australia, 863 tonnes from India and 61 tonnes from China. The cottonseed meal is produced from cottonseed oil, and is high in protein even though it cannot be used to extract oil. The COA noted that the meal could be mixed into animal feed to increase protein intake, and that animals are able to digest gossypol, the natural phenol derived from the cotton plant that is harmful to humans. "However, the gossypol would r
Monday, October 28, 2013
China lifts corn price to support farmers
July 5, 2013 China lifts corn price to support farmers China has lifted its support price for domestic farmers to levels well above those in global markets, which may have given a prop to world corn prices too. China's National Development and Reform Commission said that it would lift the price at which it will purchase corn from growers by 6% to RMB2,220-2,260 (US$362-369). The rise is aimed at supporting farmers, and avoiding them turning away from a crop crucial to keeping the country's huge hog herd fed, and its people in supplies of pork, China's most popular meat. A USDA report overnight highlighted how prices of corn left over from last year are already 10% lower than last year, "due to bumper crops and a slowdown in industrial and feed use". And prices worldwide this year face pressure from the prospect of a record US crop, following on from a record Brazilian harvest too. Meanwhile, Chinese corn farmers face increasing production costs, with labour and land rental rates expected to increase by
Friday, July 5, 2013
China's cotton share affects world supply and prices
March 27, 2013 China's cotton share affects world supply and prices The scarcity of cotton outside China may lead to rising international prices. Prices could weaken if China chooses to draw down on stocks. The cotton market is presently focused on China as the country's aggressive reserve stocks accumulation policy has raised its ending stocks from 23% of use at the end of the 2010-11 market year to 122% at the end of 2012-13. From another angle, China is boosting reserves over that stretch from 20.1 million bales to a projected 33.8 million bales. The 13.7-million bale hike tops the 2012-2013 projection of 12.75 million bales for US exports. The USDA's projection for China could isolate another 7.2 million bales in its reserve during 2013-14. China's claim over free supplies has split the cotton market between the Asian giant and the rest of the world. "The division creates great uncertainty because cotton policy in China is flexible," cautions Carl Anderson, Texas A&M University economist. "Their i
Wednesday, March 27, 2013
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