Where Does Cotton Price Go Up Quickly?

Since September,

First, due to the impact of the international financial crisis in 2008, the low cotton prices affected the cotton growers' enthusiasm for planting cotton, and the national cotton planting area decreased.

According to the statistics of National Bureau of statistics, in 2008, the cotton planting area in China was 86 million 400 thousand mu, 2 million 400 thousand mu less than the same period last year, and the output of cotton was 7 million 500 thousand tons, a decrease of 120 thousand tons compared with that of the previous year.

Second, "cotton production reduction due to weather reasons is also an important factor in soaring cotton prices."

Although China's cotton planting area is basically the same as last year, planting delays and meteorological disasters have a certain impact on cotton yield. In the year of 2010, new cotton began to appear sporadically, which was delayed about 15 days compared with previous years.

Third, from a global perspective, the international cotton price is also rising.

Despite the expansion of the cotton planting area in the United States, the hot and dry weather in August this year has affected the yield of cotton in the United States. Although American cotton will still have a bumper harvest this year, it is not the most productive year.

In August, floods in Pakistan destroyed millions of cotton.

From the present point of view, the possibility of increasing cotton production in the world is unlikely. The world's cotton production will not meet the demand, which will largely lead to the rise of cotton prices.

Fourth, it does not exclude the factors of artificial speculation.

Some enterprises bought cotton at a low price last year, hoarded for a while to sell it, and made 70 million yuan in less than a year.

Enterprises should deal with strange tactics.

The recent surge in cotton prices has brought pressure on downstream enterprises. YOUNGOR, China's leading clothing company, has developed its own cotton field in Xinjiang, mainly producing the top Xinjiang long staple cotton - Xin Hao cotton, which accounts for about 95% of the total demand, and the remaining 5% demand is imported.

The company did not plan to raise sales price because of the rising price of raw materials.

Some enterprises also make use of raw materials such as chemical fiber, viscose fiber and polyester fiber to make garments, which is much cheaper than cotton.

The price of polyester fiber at the lowest price last year is almost 9000 yuan per ton.

Some enterprises add a higher proportion of polyester in the process of blending to reduce the demand for cotton, or develop new materials to find alternatives to reduce cotton consumption.

In September 26th, the state decided to put 400 thousand tons of national cotton reserves through auction in order to ensure the demand for textile production.

On the 27 day, the seven departments of the national development and Reform Commission, the Ministry of finance, the Ministry of agriculture and the General Administration of industry and Commerce held the national teleconference on cotton work, analyzing the current cotton production and marketing situation, and deploying the cotton work in 2010.

The meeting proposed that through the efforts to achieve the 2010 domestic cotton supply and demand balance, to ensure the needs of the textile industry cotton, to safeguard the interests of the vast number of cotton farmers, and to combat malicious speculation cotton behavior.

I believe cotton prices will eventually return to reason.