Zheng Cotton Still Has A Driving Force.

After the festival, at home and abroad

At the beginning of the new year, data released by many Asian Pacific economies show that inflation pressures are rising.

According to the data released by the statistical bureau of Korea in February 1st, the CPI in January increased by 4.1% over the previous year, exceeding the target range set by the Central Bank of Korea for the first time in 3 months in February 1st.

Indonesia's Central Bureau of Statistics announced on February 1st that Indonesia's CPI rose by 7.02% over the same period in January, driven by rising food prices, exceeding market expectations.

Philippines's National Bureau of Statistics announced in February 4th that CPI rose 3.5% in January, higher than market expectations, hitting a 5 month high.

Federal Reserve Chairman Bernanke said 3 days that the pace of US economic recovery in 2011 should be accelerated. However, the high unemployment rate and low inflation rate require the Federal Reserve to continue to take stimulant measures and will continue to push global inflation.

In addition, the cotton association of China Cotton Association and Xinjiang Huatai Cotton Professional Cooperative respectively investigated cotton planting intentions in 12 provinces and Xinjiang autonomous region in 2011. It is estimated that the total area of cotton planting in 2011 is 84 million 550 thousand mu, an increase of 9.8% over the previous year.

However, the planting area of China and the United States is expected to increase in the future, and the situation of market supply and demand can not be changed in the short term. Cotton prices will remain strong in the coming months.

Although most of the textile mills are scheduled to start after the fifteen Lantern Festival of the first month, some textile mills continue to operate. Some textile factories which are not purchased before the festival are buying on the spot. However, due to the strong rise of the domestic and foreign electronic discs on the days after the holidays, the spot market has brought great impetus.

At present, the market quotation is chaotic, but not many, so even if the textile mill wants to buy, there are not many spot pactions, mainly because cotton traders and ginning plants are reluctant to sell.

Due to the low global cotton stocks, tight supply and strong demand for dollars, and the continued depreciation of the US dollar, the substantial factors of cotton prices this year still exist. In addition, the recent rise in the prices of substitutes and the rising prices of downstream yarn fabrics have led to the spread of cotton prices to related products and downstream products. Cotton prices will remain strong this year and will continue to hit a new high with the impetus of foreign cotton.