Will The World'S Cotton Prices And Output Continue To Be Dominated By The United States And China?

Cotton experts said on Monday that if all fundamentals remain unchanged, the weather will benefit cotton growth, the 2012-13 major cotton producing country in the world.

Output will increase by an average of 6% -8%.

Fazal Ahmad, a Pakistan fiber expert, said that China will purchase about 1 million tons of cotton from the new cotton this year.

China is the world's largest cotton user, and China hopes to expand government stock, which may increase.

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China's national cotton reserve company, which represents the government in charge of cotton reserves, has acquired 160000 tons since last week.

He said that in the Punjab acquisition station, Pakistan 2012-13 cotton has already begun to arrive.

If the fundamentals and irrigation and water supply are adequate, the output of cotton in Pakistan will reach about 15 million 500 thousand bales.

A senior analyst at the Beijing Capital International Futures Company said that the Chinese government has become one of the most important factors in global supply and demand.

According to Cotlook's May report, 2012-2013 years of global prediction

There will be 2 million 226 thousand tons of surplus cotton, less than 5 million 56 thousand tons of surplus cotton this year.

Pakistan

It will also raise about 300 rupees / Mende to 6500 rupees / Mende.

Last year, cotton prices plummeted 43% due to the world's supply exceeding demand.

The US Department of agriculture (USDA) reported that in the week ending June 7th, US cotton exports increased by five times compared with last week, and the December contract rose by 3.8%.

According to the report of the International Cotton Advisory Committee, China's cotton inventories will increase in the year ending July 31, 2013.

According to the US Department of agriculture, China's imports will be reduced from 23 million 250 thousand packages last year to 13 million 500 thousand packages (480 pounds or 218 kilograms per pack) in 2012/13.

China regulates imports through annual import quotas.

Within the quantity allowed to import, the tax rate is 1% of the import value, and the tax rate is 40% higher than the permitted import amount.

Cotton imported by the government for stockpiling is not included in the import quota.