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Subpr. -. UNITED STATES DEPARTCIT OF AGRICULL12u.'-
S..:. Bureau of Agricultural :conomics
C-65 WORLD COTTON PROSPECTS 17oveinber 26, 1930
SUPPLIJm'.T TO IJORLD COT0:.. PROS'CTS .1/
Cotton yarn prices during October anid ovenber were steady at levels
20 per cent higher than last July accordi_, to C-i:-.ul ickovcr at Zobe.
The fact that mills aLre now able to make na Iroder&t"- profit has ztii.iul-.ted
activity, and yarn production in October reso to 73.6 milLion opunds or
an increase of 800,000 pounds over Sex'temiber, in spite of an additional
7 per cent curtailment which became effective Octoucr 1. It is likely,
however, that the restriction of production which.. anouits to aoout 30 -?er
cent will be continued at this i-ate until the end of n.xt Marca. Pro :,r-
tion of cloth in'rcased slightly during. October, b-it exports remained
about 20 per cent below those of' the sane period last :,-e r.
Despite improved prospects spinners are still cautious antd are buy-
ing their supplies of rpw cotton on a hand-to-mouth basis. Spinners
takings of Americcn cotton so far this season have amounted to about half
of those for the same p:.riod last year. Imports of Af rican cotto'- in
October amounted to about 88,000 bales of 478 pounds or about one month's
requirement. The principal demands are for cheap short staple cottons
and as a result imports of Iadian cotton are running above normal.
Luring the first half of November there were soae complaints about
weakness iad dullness in the lyarn market in China., but doilviries are
quite satisfactory and mills arce rwining at capacity, withoutu t stocks be-
coming excessive, according to the latest cable froi,, Agricultural
Commissioner l'Fyhus at Shanghai. It was expected t'hat the market would
improve with the recent cessation of civil war activities, but since
this expected improvement has not taken place, there is a lack of con-
fidence in the market outlook. Yarn prices have fallen to the point
where operating margins are very small. There is also fear on the part of
some that the dullness in exp-rts of a number of co.io.uoditics has a.'fct-
ed the interior and in turn the demand for domestic yarn.
The Japanese mills are sold out until the spring months ind several
Chinese mills are adding additional spi-.idls. The total spindlcege in
China is now very close to 4 million spindles.
1/ Dfue to change in the date of rpblication tne r2gual-r monthly cables
from Japan and Chinp were received too l-te to be included in the
regular -lovember report. These together with somn other reports are
given in this supplement. ___
S U.S. DEPOSITORY
C._ G-2 IlliIllillllIllliI1110
3 1262 0886
Stocks of piece goods are low rnd the m -arkect is in better con-
dition thnn formerly, -lthough the volume of the business remains re-
latively small. A part of this dullness is attributedd to finenci-al
uncertainties, caused by orders fro1;. the .Lan.kin Government to observe
the foreign calendar in collecting aiinual rccounits, whereas in the in-
terior the order will be ineffective 0ad collectio:.s will follow the
customa.r trcaitions of settling accounts c.t the close of the Chinose
year in February.
During th. past few weeks arrivals of -a.tive cotton have boon :;,
relatively small and prices have strengthened some in sympathy with
foreign cotton. ILills have not bcon heavy buyers of native cotton, :..
because of the dullness in the yar. market, ".nd because prics are ncon-
sidered high in relation to the price of Indican cotton. As a result t "1-
mills have bought large qucntictics of Indian cotton. business in A:nerte:: .!
cotton has slowed up after active buying during. the past two months.
Arrivals of Americo: cotton in China during December and January will be:
l.rge.- -a prose.:t stocks of Aomrican cotton in the Japanese mills
are very low and early arrivals are being immncdiately obsorbid. This '
together witL- t.u adding of spindles in so:ne Chin-ee mills, which will
require ,ncrica:i cotton, mckcc the outlook for the co:nsu-aption of
American cotton bright.
The irtest reports from Great Britain and the Continent are some- ir
what mixed. From France it is reported that the situation is becoming -
nonral again, -nd that mills a.re resuming the buying of raw cotton,
particularly spots for prompt delivery. There is also a good amount of' 1;
purchasing of futures, convertible to actual, but the demand for forward.*'
shipments is small.
In Italy the spinners nre discussing coimpulsory reduction in a'tivifit
in spite of some largo export sales of yarn. The demrAd for raw cotton ,
in Italy is reported f.ir, i
The demand for cloth has increased some during the past ten d ;ys.
in Gre-.t Britrin with more sales to India, according to reports from I
Manchester. Demands from Chinr, however, P.re quiet. The trade in yrm n:.:l
is steady but slow, and the demand for actual cotton is quiet. .:4-
Acroege of Sakolleridis restricted in T/pt )
A decree h, s bccn issued prohibiting the planting of S. cellaridi i!
cotton in rgypt except in 3 provinces, and in these provinces the acro
is to bc limited to 40 per cent of the present acreage, according to
cable from P. K. Jorris, Cotton_ Snpcialist of the Foreign iAricultr al.:. '.:
Service,st.tioned at Cairo, to the Foreign Service of the Bureau of
Agricultural :2c onomics.
In 1929 :-'pt had 1,912,000 across in cotton of which 380,000 acre I
or 46 per cent ;wre Sa!kellaridis. About 85 n;r cent of the S.nollaridi4,:
acreagu is in tne 3 provinces of Ch'.rbiya, Behcira and Daq-.lityn.