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China to issue more cotton import quotas amid U.S. trade talks

cotton sitting in China’s bonded zones, he said, although it could also benefit purchases of fiber from growers like India. “There’s not too much U.S. cotton available right now, but I don’t think senior officials consider this,” he said. Despite the move to boost imports, the China Cotton Association said supplies were “basically sufficient”, and that “abnormal fluctuations in the current market are influenced by speculation and other factors”. China’s cotton output this year is expected to remain stable, with weather disasters about the same as in previous years, the association said. Bad weather came “relatively early” as well, reducing any impact on yield, it said. Its comments came after concerns about hailstorms and heavy rain in top producing region Xinjiang drove prices higher, even as some traders warned the weather would have a relatively small impact. It also said that commercial inventories were about 2.87 million tonnes at end-April, about 1 million tonnes higher than the same time last year. And while cotton demand has been steadily rising this year, there is limited room for growth.

For the original version including any supplementary images or video, visit https://www.reuters.com/article/us-china-cotton-auction/china-to-issue-more-cotton-import-quotas-amid-u-s-trade-talks-idUSKCN1J00HC

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