China Cottonseed Imports Show Strong Demand in Recent Years
11.10.2024 23:33 "Agro Perspectiva" (Kyiv) —
According to the report of the USDA Oilseeds: World Markets and Trade (October 2024), China cottonseed imports increased in recent years, setting a record at over 650,000 tons in 2022/23. Imports are expected to remain strong in 2023/24 and 2024/25, though down from the record. Australia and the United States supply nearly all of China’s cottonseed imports, with Pakistan, Cameroon, Benin, and Burma exporting marginal tonnage. Over the last 5 years, China imports of cottonseed from Australia reemerged from zero to total over 650,000 tons in 2022/23. In 2020/21, Australia’s cottonseed crop rebounded following the effects of a 2-year drought, which had limited exports to near zero. By 2021/22, Australia cottonseed production returned to pre-drought levels as production areas received plentiful rainfall, enabling a substantial increase in exports. This trend of large exports has continued in 2022/23 and 2023/24. Australia cottonseed production in 2024/25 is expected to remain high at nearly 1.3 million tons. In 2021, China expanded market access to the United States. Year-to-date 2023/24 shipments from the United States are already at a record of nearly 110,000 tons with one month outstanding. In 2023/24, China was the world’s second largest producer of cottonseed after India, and the largest consumer. China produced 10.7 million tons and consumed 11.4 million tons of the 41.3 million tons of cottonseed consumed globally. China produces most of its domestic cotton in the Xinjiang province. This production is relatively far from crushing facilities at the coast, providing a market opportunity for imports when there are competitive prices for U.S. and Australia cottonseed. China cottonseed production for 2024/25 is forecast at 11.1 million tons, up from the previous year based on stable area and a modest increase in yield. While China’s rising expected production results in a lower import forecast for 2024/25, China is still projected to import 500,000 tons to meet its consumption forecast of 11.6 million tons. AGRO PERSPECTIVA offers Agro + «Ukrainian Grain & Oilseed Market» weekly analytical bulletin. Concerning subscription please contact: client@agroperspectiva.com or +380675964652 (WhatsApp, Viber, Telegram).
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