China is likely to have a bumper cotton harvest, and output may rise 12.3 percent to 7.48 million tonnes this year if weather remains favourable in coming weeks, the China Cotton Association said in a report. The estimate for higher output - after upward revisions of 4.1 percent in the planted acreage from last year - was 25 percent above the official National Bureau of Statistics' reported 2010 output of 5.97 million tonnes.
The association said steady rains this month may hurt output in some areas, but weather in the top growing region of Xinjiang and the areas along the Yellow River remains good, it said in a monthly report posted on its website (www.china-cotton.org).
China's cotton stocks remain large, with commercial stocks now standing at about 834,000 tonnes, which was 45 percent higher than the same period a year ago and down by only 91,000 tonnes as compared with the level in June, indicating sluggish demand from textile mills. Local cotton futures fell nearly 40 percent since February's record high and traded at 20,155 yuan ($3,158) per tonne on Wednesday. The government has said it would start stockpiling cotton for state reserves if prices drop to 19,800 yuan per tonne to help aid prices and protect farmers' interests as the domestic harvest approaches.
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