The report from US Agriculture Ministry Overseas Agriculture Department show that though Argentina generates great cotton output during 2006-2007, but Argentina spinning factory still may import 35000 ton cotton. The export of lint is anticipated to reach 12000 ton, inland cost 160000ton.
During 2006-2007, Argentina is anticipated to import 35000ton lint due to the output reduction of cotton during 2005-2006 while inland textile industry continues to resume.
During 2006-2007, cotton import reaches about 30000ton, valued $34million, 28000ton during August.2005-March, 2006.
Argentina import SLM high quality cotton mainly. In 2005, the cotton imported from Brazil account for 95% of total Argentina import, 85% in 2006. Inland factories would like to pay for importing cotton from Brazil because Brazil cotton have no impurity , but high quality, consist batch and short transport time. Besides, Argentina also imports part Paraguay cotton.
Argentina inland denim producing enterprise will receive 640 ton US lint in future months, which is the cotton purchased on the end of 2005. 60 ton freight have arrived, FOB $1110USD/ton, CIF$1180USD/ ton. The result is satisfied. About 15 spinning local factories is importing lint.
One of main polices of Argentina government is keeping exchange rate with competition capability to expand export and restrict import. In 2006, exchange rate is anticipated to be 3.05-3.10, but inflation 10-12%, which weaken competition advantage.
