Inventory Reduced By &Nbsp; Demand Stable &Nbsp; US Cotton Continued To Strengthen.

　　 On Friday, the US Department of agriculture anticipated cotton The decline in inventory has led to a continued strengthening of cotton futures and a long-term inventory reduction trend unless cotton mills refuse to buy cotton because of rising cotton prices.

The US Department of agriculture's report on output and supply and demand in December reduced the 2010-11 year cotton inventory in the US by 200 thousand packets.

According to the report, the end of July at the end of the United States Stock It's 1 million 900 thousand bales.

Mike Stevens, an independent cotton analyst at Luis Anna Demandeville, said that the 1 million 900 thousand pack carry over inventory was very tight. From July 31st to the new farming year, there was so little carry over inventory that there was basically no supply of circulation channels. We will face a bull market in one or two years or so.

　　 ice The cotton contract for delivery in March has increased by 1.7% in recent years, closing at $1.3828 / pound.

Cotton futures have risen 80% since entering the new cotton year in August, mainly due to tight supply, setting the highest price after the civil war.

Globally, the US Department of agriculture has reported that the increase in output in Australia and Brazil may offset production reductions in other production countries, such as the United States and Pakistan, but the estimated global cotton inventories in 2010-11 years are still slightly lower than those predicted at the beginning of the year.

In addition, China's weather may cause cotton production to continue to decrease, because China is the world's largest cotton producing country and importing country, so it may push prices up due to tight supply.

A Morgan Stanley report said Friday that because of the large output in 2010, the US and India will fill most of the 2011 cotton vacancies. The US cotton has just been picked and has just entered the warehouse along the Gulf coast of Mexico. The total annual sales volume is about 15 million 750 thousand packs, of which 13 million 900 thousand packages have been sold.

The report added that although the price is high and demand remains strong, we expect this trend to continue until next year.

Some analysts are waiting to see the reaction of factories and markets to the continued upward trend in the medium term price.

Sharon Johnson, senior cotton analyst at Pang Sen futures, said: "our price has been very high, the price is rising too fast, and the time is not symmetrical. However, because of the cotton consumption and high price, it is impossible to cool down overnight.