May 23, 2012

China's cotton land seen to drop over 9%

The 2012 cotton area of China is estimated to decline 9.2% on-year, fewer than the previous forecast, according to the China Cotton Association said Tuesday (May 22), based on its April survey of growers.

In a previous survey, acreage was expected to fall 9.4%, the association said in a statement on its website.

Domestic cotton prices have fallen to their lowest level in about 20 months, pressured by a global surplus of cotton and weak demand due to the economic slowdown. This has discouraged cotton farmers in China from planting, resulting in a decline in acreage.

Cotton planting in China was nearly completed by the end of last month, and the progress was faster than the same period last year, the association said.

The association said last week that it expected cotton output this year to fall from last year's 7.28 million tonnes due to the acreage decline.