Cotton Stocks Remain High In The Global Cotton Market

As China's domestic cotton reserves have increased substantially,

Weekly reports showed that exports were significantly warmer, and ICE futures contract fell to 70 cents in December to stimulate global consumption. Prices in the central and Southern cotton and Southeast cotton areas were generally below 80 cents / pound due to grades, horse value and length. Cotton mills and traders in Pakistan, China, Turkey and other countries were buying large amounts of cotton.

According to some foreign businessmen, the rumors that the Chinese government will abolish the sliding tariff of cotton imports in 2013 are also strong. Only 1% of the quotas for quotas and trade quota for processing cotton are issued, and the total volume is not higher than 2 million tons.

India cotton and American cotton far month showed a certain resilience in the global cotton market.

In November 16th, the pickup price of India Shankar-6 ginning factory was 33500 rupees /candy, 77.90 cents / pound rebounded, 0.10 cents / pound lower than the previous low point. The price of foreign cotton of the international cotton traders and importers in the far month was flat or even slightly higher than that of last week. The price of bonded cotton has been exceeded 3 million tons due to the influence of domestic futures, matching low shocks, actual storage and storage volume, and the promotion of 328 cotton prices in the vicinity of 18500 yuan / ton.

Enterprises need to replenish their stocks. Xinjiang cotton has been pported to the mainland with very little cotton because of the large number of storage and pportation. The real estate cotton is mainly made up of grade four or five, so the port bonded cotton has become the focus of attention of cotton enterprises.

Some imported enterprises also customs clearance of 84-85 cents per pound of cotton with 40% full tariff.

At present, ICE registered stocks continue to increase, global cotton stocks are at a high level, the pattern of consumption weakness has not yet changed, and the market is worried about the recession in the US, Europe and Japan. The ICE futures contract rebounded in March is highly limited, and cotton prices are expected to rebound at 74-75 cents. Therefore, traders in Qingdao, Zhangjiagang, Shanghai and other places are taking advantage of the ICE rebound to speed up the sell-off of bonded cotton.

As for the cotton on the shipping date of the far month, on the one hand, the uncertainty of China's import government is great; on the other hand, the contract returned to 72-73 cents in December, and the enthusiasm of paying full duty import decreased.

It is reported that from the end of November, there will be 2012/13 cotton in India. In the middle of December, there will be S-6 cotton to Hong Kong.

The stock will go up.