Louis Da Fir Accused China Of Hoarding Cotton And Distorting Market Prices.

< p > Louis Da f is the largest cotton trader in the world.

China is the largest cotton consumer.

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Joe Nicosia, head of the trading department, Louis a href= "http://www.91se91.com/news/index_c.asp" > cotton /a /a, said Thursday that China's massive hoarding of cotton plans hindered the recovery of the fragile industry and distorted global a href= "http:// www.91se91.com/news/index_cj.asp" > cotton price < p.

By the end of March this year, the Chinese government's strategic reserve is expected to accumulate about 40 million bales of cotton.

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"P > at the Cotton Beltwide conference conference, Joe Nicosia told hundreds of American cotton growers that demand for cotton users would not rebound unless cotton prices fell to the level of competition with polyester fibers.

This is only when China stops hoarding cotton.

"The longer this strategy takes place in China, the worse the cotton industry will become."

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< p > Joe Nicosia thinks that these excess stocks can only disappear in 2014 or 2015 and the market will return to equilibrium. He said: "China will not sell cotton on a large scale, but it will hold for a period of time, which is disappointing for the market."

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P's words reflect the general concerns of American cotton growers, cotton growers and textile mills.

China's cotton purchase and storage actually made half of the world's cotton stock out of the a href= "http://www.91se91.com/news/index_s.asp" > market < /a >, and the industry is trying to repair the damage caused by the crazy price fluctuation in the past 4 years.

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< p > because the market supply of cotton in the 2012-2013 quarter reached a record high of nearly 80 million packages, while consumption dropped by nearly 1/5 from the 123 million pack in the 2005-06 season. Nicosia believes that cotton prices should be stable at 50 cents.

However, because half of the world's cotton stocks are in the hands of the Chinese government, he believes that once cotton prices fall to 70 cents, China's strategic reserves will usually intervene in the acquisition of cotton.

The Chinese government almost 2 times the purchase price of US cotton futures price encouraged Chinese farmers to grow more cotton, but at the same time, the higher prices also made textile mills turn to cheaper synthetic fibers.

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< p > however, when Louis was accused of hoarding cotton in China, he was also involved in a lawsuit that was suspected of manipulating the cotton market.

The prosecution believed that Louis Da fir manipulated the cotton market last year after the cotton price reached its highest point since the civil war.

At present, Louis Da Fu claims that the Mark Allen, including former top Glencore senior trader, does not provide enough evidence to prove that Louis Da f controls the price of cotton illegally.

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