China Captures 40% Increase of World Ending Stocks.
While many countries seek to reduce stocks due to sluggish demand and price fluctuations, China is seeking to increase their reserves to prepare for an increase in domestic demand.
Egytex News Desk
Source: Cotton24/7
A recent United States Department of Agriculture (USDA) report states world ending stocks are forecast at the largest single-year increase in 25 years due to global production and demand. Last year’s record prices and China’s decision to rebuild reserves contribute to the rise. The country increased its imports by 500,000 bales to 16 million in order to rebuild reserves.
China will capture about 40% of the increase of the ending stocks. The government has purchased close to 12 million bales of domestic cotton and several million bales of foreign cotton, according to the USDA.
Source: Cotton24/7
From the Egytex news archive, first published on 6 February 2012. Figures and names are as reported at the time.
