A Sharp Shake Up Of Cotton Prices In The Late Period

Integrated BOABC monitoring, since the new cotton market, from the seed cotton market to the lint market, the entire cotton market has been overadjusted, after mid November cotton prices have been substantially adjusted, it is expected that the latter will continue to shake adjustment.

Acquisition of seed cotton

The average price of seed cotton purchase price reached 10897 yuan / ton, the average price during the same period increased 68.74% over the same period last year, and the cotton price index reached 23168 yuan / ton, up 77.93% compared with the same period last year.

The price for December 13th is,

Lint price

The monthly average price of China's cotton price index in November was 28442 yuan / ton, an increase of 98.76% over the same period last year, a rise of 14.93% over the same period. The average monthly price of Zhengzhou commodity futures was 28878 yuan / ton, up 98.98%, up 9.36%; the international spot price was 2930 US dollars / ton, up 122.70% over the same period last year; the price of the international futures price increased 18.87%; the average monthly price of international futures price was 3539 yuan / ton, an increase of 93.56% over the previous year.

The current lint price is still in the stage of over rising, and will still fall considerably later.

Although domestic cotton production decreased continuously for two consecutive years in 2008 and 2009, cotton output remained low in 2010, and domestic cotton safety coefficient was at a low level. However, in 2010, the international cotton production showed a great recovery, and the global cotton safety coefficient was much higher than that of domestic water level. The supply of cotton was better than last year, and the global cotton safety coefficient decreased.

The impact of the price of the cotton market is more from the money market, which determines that the cotton price in 2010/11 will fluctuate considerably.

Cotton demand impact

The rise of cotton prices has brought about a marked change in the downstream demand. The current cotton spot price increase is around 90%. After conduction, the price of textile and clothing will rise by 70-80%. The demand for textile clothing and cotton demand will be affected. Cotton demand will decline considerably, and the adjustment of the market itself will lead to a fall in cotton prices.

However, tighter supply and demand determines that the final price of cotton will increase substantially compared with the previous year.