Cotton Situation Monthly Report for September

In September, cotton entered the peak boll-opening period with generally favorable weather conditions. New cotton harvesting and sales began, with yields steadily increasing, making it likely that production will rise.

The yarn and fabric output of enterprises above the designated size increased by 5.3% and 3.0% month-on-month. Yarn output reached 1.981 million tons, a year-on-year increase of 1.1%, while fabric output was 2.73 billion meters, down by 1.4% year-on-year. For January to September 2024, yarn output was 16.552 million tons, down by 1.4% year-on-year, while fabric output was 23.44 billion meters, up by 1.4% year-on-year.

This year, China’s textile and apparel exports to the United States and the European Union and stable growth in exports to countries involved in the Belt and Road Initiative. In the third quarter, national textile and apparel exports grew by 2.5% compared to the second quarter and by 20.2% compared to the first quarter. 

Chinese cotton planting area in 2024 is 41.806 million mu, up by 0.1% year-on-year, with an estimated total production of approximately 6.201 million tons, up by 5.5%, an increase of 165,000 tons from the previous forecast. By the end of September, the national cotton harvesting progress reached 4.7%, 0.2 percentage points faster than the previous year, with a sale progress of 1.5%, also 0.2 percentage points faster year-on-year.

In September, the China Cotton Price Index (CCIndex3128B) had a monthly average of 15,025 yuan/ton, up by 67 yuan month-on-month but down by 3,218 yuan year-on-year. The Cotlook A Index averaged 82.6 cents per pound, up by 3.4% month-on-month but down by 15.7% year-on-year, equivalent to a 1% tariff price of 14,490 yuan/ton, 535 yuan lower than domestic prices, with the price gap narrowing by 394 yuan compared to the previous period.

Data from CCCT