China’s cotton output could fall 5.5% this year as low temperatures and high rainfall affected planting and crop growth, Bloomberg reported, citing a report by state researcher Cncotton.com. Full-year production might fall to 6.36 million metric tons after a 1.1% contraction in area planted, leading to a 4.4% drop in yield. Cotton output in Xinjiang, the country’s biggest producer, could fall by 6% with yields down 7.7%, the report said. With domestic demand for cotton rising, prices in New York have climbed 69% so far this year with inventories in the US, the world’s biggest exporter, declining. The US Department of Agriculture estimates China’s production this year to trail domestic demand for the twelfth consecutive year, leaving the country’s stockpiles at their lowest since 1995.
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