Private Estimates Suggest 50 Percent Decline in ELS Acreage
Source: Globecotnews Date: 2008-06-10
Private discussions across China's Xinjiang Province suggest that 2008/09 acreage devoted to ELS seed varieties have sharply declined, dropping by as much as 50 percent due to lack of crop profitability. Several of the largest growers either cut ELS acreage 50 percent this year or did not plant ELS varieties at all. China's ELS market is experiencing some chaos. First, a large block of unsold stocks of 2007/08 production is still held by merchants; second, the introduction of enhanced standards for ELS has further broadened the quality and added to the lack of confidence by mills. Despite record domestic ELS stock levels, Chinese imports of U.S. Pima continue because retailers demand its use.
Globecot estimates 2007/08 ELS acreage at 90,000 hectares, while 2008/09 acreage could decline to 45,000 - 50,000 hectares. It should be noted that Globecot defines Chinese ELS acreage and production as cotton with a staple length of 35 millimeters and longer. The Chinese Fiber Inspection Bureau now defines any cotton longer than 31.6 millimeters as ELS. 2007/08 production of long staple 31.6 to 35 millimeter cotton is estimated to have reached 50,000 tons.
