Markets/Trade
- Reuters reports that Brazil’s cotton growers are not reassured that the U.S. Congress is making sufficient measures to prevent WTO approved trade sanctions resulting from a dispute over cotton subsidies. Brazil challenged U.S. subsidies and won the right to impose sanctions but has refrained on promises of the U.S. reforming its ag policies, but a recent delegation to Washington is concerned that a new Farm Bill will not pass on time or be able to meet WTO standards to prevent the delayed implementation of trade sanctions.
- Dominique Patton and Lewa Pardomuan report for Reuters that China’s cotton stockpiling has made domestic raw fiber costs so high that many Chinese mills and spinning companies are moving abroad to seek better profits. Many have set up in Vietnam due to the shared border, beneficial logistics, and the duty-free yarn export agreement between the two countries, but the U.S. could also become a popular destination. One yarn maker, the Hangzhou-based Keer Group, is already set to break ground on a $218 million spinning factory in South Carolina next month.
- Jenna Cairney reports for The Land that Australian cotton farmers are taking advantage of a weakening Australian dollar and any rallies in the cotton market to make sales, with 70% of the crop already locked in. Eyes are glued to China and potential changes in reserve policy which could impact the global market, while Australian acreage is expanding to non-traditional areas.
- Ritwik Mukherjee reports for India’s Financial Chronicle that Pakistan and Bangladesh imports of raw cotton from India have increased due to poor domestic production and improved production and quality in India’s cotton crop this season, favoring Indian imports to U.S. or Brazilian cotton due to reduced costs and transport time. At the same time, China has increased imports of cotton yarn over raw fiber.
- Pakistan’s The Express Tribune reports that Pakistani cotton and seed companies are pushing for Bt cotton certification in the country along with improved legal cover for the private sector to allow for better seed and crop technologies to increased domestic yields.
Production
- According to a recent press release the South Carolina Cotton Growers Annual Meeting will be held on January 23 in Orangeburg.
