In the week of September 22-28, 2023, the contracted volume of US upland cotton exports to China totalled 28,647 tons, accounting for 52.58 percent of the total US cotton export contracts in that week.
In the week under review, China was followed by Vietnam with 15,572 tons, accounting for 28.58 percent of the total US cotton export contracts.
Some institutions and cotton-related companies believe that the explosive growth of US cotton contracts from China is due to the three consecutive negative conditions of ICE cotton futures from September 20 to 22.
The main December contract hit an intraday low of 85.55 cents per pound, triggering cotton textile mills and traders with quotas to enter the market at low prices. In addition, with the start of harvesting in various cotton areas in northern Xinjiang in late September, farmers have reported that the yield per unit area is lower than previously measured and expected.
This has caused worry among cotton-using enterprises that cotton prices in the domestic market will be higher in the 2023-24 cotton season. “Which is why measures will then be taken to lock in foreign cotton resources in advance to ensure the supply of quality raw materials,” experts said. In addition, the additional 750,000 tons of cotton import sliding tax quota issued in 2023 can be extended to be used before the end of February 2024.