"CHINESE IMPORTS BOOST COTTON TRADE"

A surge in cotton imports into China is set to boost global cotton trade this season, and is also likely to keep cotton prices low. World cotton area is expected to fall in response to lower prices, rising agricultural production costs and the improving attractiveness of alternative crops  

The forecast comes as cotton plantings get underway in the northern hemisphere for the 2012/13, which runs from August 1st  to July 31st, 2013. U.S. production could rise by 11% despite reduced plantings, assuming improved weather and lower abandonment than in 2011/12.    

With global production exceeding global consumption, global stocks are expected to continue increasing by 9%, or 59% of world mill use.  

The International Cotton Advisory Council (ICAC) estimates world cotton shipments will rise by 13% in the 2011/12 season -(through July 31st )- driven by record imports from China. 

Efforts to build China's cotton stockpiles mean there is less cotton available for other countries.  US cotton exports are dropping by 21%, due to reduced supplies, but shipments from India, Brazil and Australia could reach record levels.     

"MEXICO AGAIN A KEY U.S. CLOTHING SUPPLIER"  

Signs are emerging that Mexico's textile and apparel industry is gaining a growing proportion of the U.S.market as it benefits from an increasing focus on higher-value products and greater diversification.  

In 2000, Mexico was the U.S.'s largest apparel supplier, but it had slipped to the sixth largest by the end of 2010. Manufacturers are focusing on their ability to offer flexibility and fast turnaround times, as U.S. buyers appear increasingly reluctant to source high volumes of clothing from China.

However, the value of Mexico's clothing exports to the U.S. grew by 7.4% in 2011, as it moved up to be the fifth biggest supplier to the U.S.

      Source: OTEXA (the US Office of Textiles and Apparel).

China  remained the top supplier, but its growth was slower than that of Mexico.

Data from Mexican apparel industry association Canaive states that the gap in overall manufacturing wages between Mexico and China has shrunk dramatically over recent years, with Mexican labor 13.8% higher than that in China in 2010, compared with 237.9% in 2002.