Supply Is Tight. Zheng Cotton Is Stepping Up.

Global cotton prices once again rose to a new high.

Boosted by this, domestic

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There is no doubt that the international cotton market is still in a tight supply.

According to the latest report from the US Department of agriculture, by the end of the day, less than 10% of domestic cotton exports could be exported.

Similarly, other export giants such as Uzbekistan have little left for export cotton, India exports maintain 5 million 500 thousand packages, and affected by floods, Australia's cotton production in 2010/11 is expected to be reduced to about 870 thousand tons, which was estimated to be 958 thousand tons.

In this regard, the market is generally expected that the late international cotton supply will continue to be tight, China needs to import a lot of cotton, cotton prices in the later stage is expected to continue to rise.

Data show that in 2010, China imported 2 million 840 thousand tons of cotton, the highest level since 2006.

According to the data survey of China Cotton Association, cotton picking basically ended in December last year, and output was not adjusted. The total output of the country was 6 million 650 thousand tons, compared with that of the previous year, a decrease of 2.1% compared with the previous year.

As of the end of December last year, the national average sales progress of 80% (sales volume accounted for the proportion of total output), a year-on-year slowdown of 11.6 percentage points.

Among them, the sale of Xinjiang has basically been completed, more than 80% of the Yangtze River Basin, and only half of the the Yellow River basin.

Faced with the pattern of reduction in production, domestic cotton purchase and sale prices continue to rise slightly.

In the spot market, in January 27th, China's cotton price index (328) was 28501 yuan / ton, up 68 yuan / ton; on the same day, the purchase price of new cotton was 6.17 yuan / Jin, 328 cotton seed purchase price was 328 yuan, and cotton lint was 27348 yuan / ton, up 115 yuan / ton compared with the previous day; in January 26th, the price index of imported cotton was 189.54 cents per pound; the 1% tariff was 31946 yuan / ton, and the discount slip quasi tax was 32276 yuan / ton.

According to the latest monthly report of China cotton reserve management corporation, as the Spring Festival holidays are approaching, the downstream factories are starting to take off, and the purchasing demand for raw materials is slowing down.

In the context of tight cotton supply and downstream market continues to warm up, the parties generally optimistic about the market after the Spring Festival, cotton enterprises reluctant to sell psychological enhancement, domestic cotton purchase and sale prices remain high, and a slight upward trend.

In the medium to long term, cotton prices will rise sharply under the influence of the US dollar's weak trend, the severe drought in Australia and cotton and the floods in Brazil, and China's signing of the US cotton activity and the India government's policy of limiting cotton exports this year.