Close To The End Of Storage &Nbsp; Cotton City Lack Of Support

So far last week,

As of March 16th, the total amount of cotton storage and storage in China's cotton reserves reached 2 million 913 thousand tons in 2011, accounting for 39.9% of China's total cotton output last year.

There will be no problem at the end of March to complete or exceed 3 million tons of storage capacity.

The purchase and storage of the market has reduced the number of high-grade cotton in the market.

After entering April, the direct force to support cotton prices will disappear, and whether the new support force can emerge rapidly is questionable.

Cotton consumption is weak and sales are slowing down.

According to the cotton information network of China, the total inventory of cotton raw materials increased from 841 thousand and 700 tons last month to 858 thousand and 600 tons, with an increase of only 2%, according to the survey of textile enterprises with a total volume of 13 million 840 thousand spindles.

Of these, 45% of the cotton stocks in the warehouse are available at a monthly level.

12% of the enterprises reduced their cotton stocks, while only 9% of them increased their raw material stocks.

According to the network survey, as of the end of February, the total domestic cotton business inventory was 3 million 430 thousand tons, an increase of 180 thousand tons from the previous month, an increase of 5.54%.

The sale of cotton grade high grade cotton mainly depends on national reserve, and the market sales rate is slow.

From the global cotton market, supply is sufficient, laying a loose tone.

In March, the US Department of agriculture's cotton report raised the 2011/2012 global cotton output forecast to 26 million 920 thousand tons, and the global end of the stock market increased 337 thousand tons to 13 million 569 thousand tons.

Meanwhile, the March report lowered global consumption by 215 thousand tons to 23 million 672 thousand tons, and the global stock consumption ratio rose to 57.32%.

The global cotton consumption ratio has been the highest since 2009/2010.

Cotton imports have not been reduced and domestic supplies are abundant.

According to customs statistics, in February 2012, China imported 616 thousand tons of cotton, an increase of 432 thousand tons compared with the same period last year. In 2011/2012, China imported 2 million 616 thousand tons of cotton, an increase of 79.1% over the same period last year.

According to statistics from the US Department of agriculture and China cotton information network, cotton production in China was about 7 million 300 thousand tons last year.

According to the current cotton spinning industry's monthly cotton consumption of 650 thousand tons, only existing commercial and industrial inventories can meet the industry's use until August.

Considering that there are still additional factors of cotton resources in the next few months, even if the national cotton reserves in 2011/2012 are not sold in the market, it will basically meet domestic cotton demand.

To sum up, the domestic cotton market is generally characterized by insufficient supply and insufficient downstream demand.