China Cotton Production, Quality May Decline in China, Boosting Imports  
  
Buzz Print China, the biggest cotton grower and buyer, may boost imports as low temperatures and rain hurt crop quality and production, according to a Bloomberg News survey.

The crop may shrink for a second year to between 6.4 million and 6.8 million metric tons, said five China-based analysts. Production tumbled 13 percent to 6.8 million tons last year, according to the China Cotton Association.

Increasing imports may extend gains in New York futures which soared 25 percent since July 20 to a 30-month intraday high on crop damage in Pakistan and concern global demand will outstrip supply. A lack of quality cotton may also fuel a continued rally in local prices. China's government has been selling from stockpiles to help plug the shortage.

China will import 12.5 million bales of 480 pounds each in 2010-2011, 14 percent more than the 10.94 million bales in the previous year, according to the U.S. Department of Agriculture.

Demand in China may outstrip output by more than 4 million tons this year, which will make the country increasingly reliant on imports, Du Ying, an analyst at Wanda Futures Co., said by phone from Urumqi, Xinjiang. Du estimated output at 6.8 million tons, lower than the USDA prediction of 7.2 million tons.

The U.S. has sold more than 1 million tons of exports from the new crop, of which China is taking more than 400,000 tons, according to Jinshi's Dong.

China will import 12.5 million bales of 480 pounds each in 2010-2011, 14 percent more than the 10.94 million bales in the previous year, according to the U.S. Department of Agriculture.

Demand in China may outstrip output by more than 4 million tons this year, which will make the country increasingly reliant on imports, Du Ying, an analyst at Wanda Futures Co., said by phone from Urumqi, Xinjiang. Du estimated output at 6.8 million tons, lower than the USDA prediction of 7.2 million tons.