Cotton Prices Are Out Of Balance.

Cotton prices are experiencing a downward trend since last year's crazy rise. However, this trend has not affected the promotion plan of the CCI.

Recently, the United States International Cotton Association held a "natural" in Beijing.

Perhaps to coincide with the theme, the American Cotton Association also invited American cotton grower Jimmy (JimmyWebb), who is the source of the US cotton supply chain, to attend the event.

The opening speech of the American cotton grower is not "hello" but "friend", which makes the atmosphere at the scene look relaxed.

At the same time, at the meeting, 21 enterprises approved by the American Cotton Association launched personalized design.

The price of cotton has become the most sensitive keyword in this activity.

Domestic cotton prices rise and fall

According to the reporter from the informed sources, it is in the

The person said that Gao Fang, executive vice president of the China Cotton Association, introduced the 2010/2011 cotton related situation in Shanghai textile raw materials forum.

According to the forecast, the domestic cotton output is about 6 million 650 thousand tons in the year, and the national cotton reserves will be 1 million tons. It is expected to import 3 million tons (up to 1 million 950 thousand tons in April this year), the total amount of resources is about 10 million 650 thousand tons, the yarn production is expected to reach 27 million tons (up to 18 million 130 thousand tons in April), the total consumption will reach 10 million 600 thousand tons, and the supply and demand will be in a tight balance.

In addition, at present, the turnover of cotton in China is around 1 million 250 thousand tons, and the turnover is about 90%. The surplus cotton is basically concentrated in the hands of farmers in the the Yellow River River Basin.

Data show that in the Shandong Wei Qiao cotton futures market, in April 1st, the price of three lint per ton was 28 thousand, and the quotations per ton in April 20th and 28th were 27 thousand and 500 yuan and 25 thousand and 500 yuan respectively. In May 5th, the price dropped from 25 thousand yuan per ton to 24 thousand yuan per ton.

In more than a month, the price of three tons of cotton per ton dropped by 4000 yuan.

Before the crazy rise period, the highest price of grade three lint reached 34 thousand yuan per ton.

As a major cotton producing country and an important import source country of cotton in the United States, cotton cultivation in the United States is not optimistic.

According to Mao Kailin, drought in Texas is not conducive to cotton growth.

At the same time, because of the higher price of corn and soybean than cotton in the United States, the willingness of cotton growers in the United States continued to decline.

In recent two years, the world's cotton supply and demand situation is also in a tight balance.

According to the prediction by the US Department of agriculture (USDA), the world's cotton output is about 1 million 153 thousand packs (about 25 million 20 thousand tons) in and consumed 1 million 166 thousand packages (about 25 million 300 thousand tons). In the year of 2011/2012, the world's cotton output increased slightly, reaching about 1 million 275 thousand packages (about 27 million 670 thousand tons) and consumed about 1 million 200 thousand packages (about 26 million 40 thousand tons).

The cheap cotton era is over.

Gao Fang believes that the recent decline in cotton prices is a rational regression since last year's high operation, but the sharp fluctuations in cotton prices will inevitably have a serious impact on the downstream textile industry.

The response of the industry is that the cheap cotton era has passed.

With the further expansion of demand, the proportion of chemical fiber in textile raw materials will continue to improve. With the development and application of high-tech fiber materials such as biomass fiber, recycled fiber recycling system will become an urgent topic.

Experts said that since February this year, cotton prices continue to decline, the whole cotton market to see the atmosphere is thick, from the basic level of the cotton market and economic level, cotton prices rebound is still possible.