China'S Cotton Import Needs Boost The US Cotton Market

Since January this year, the a href= "http://www.91se91.com/news/index_s.asp" > US cotton futures < /a > rebounded strongly, breaking 80 cents, hitting a 7 month high.

Zheng cotton also followed the external market rally, but rebounded less.

Experts said that after the state's continuous collection and storage, there was a temporary shortage of supply in the domestic cotton market, and some enterprises chose to import imported cotton.

China's import demand has effectively boosted the US cotton market, and the probability of shifting the focus of global cotton prices will be greater in the future.

< p > < strong > China's import demand boosted the US cotton market < /strong > /p >

< p > as of yesterday, the United States cotton has been strong in achieving "eight Lian Yang", the cumulative increase of nearly 6% in January.

Experts say that domestic cotton imports are increasing at the moment, and the purchase of cotton spinning enterprises and China's national reserves has effectively boosted the price of US cotton.

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< p > it is reported that the number of China's a href= "http://www.91se91.com/news/index_c.asp" > cotton < /a > is close to 6 million tons, nearly 80% of domestic output, and the supply of cotton is limited in the market.

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< p > "after the continuous collection and storage of the state, the quantity of cotton available in the domestic market is not large, while the demand for textile enterprises before the Spring Festival is strong, causing a partial shortage of cotton supply, so some domestic textile enterprises consider importing cotton."

A cotton spot trader told reporters.

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Wang Yong, analyst at Hongyuan futures, said that since January, the US cotton rebound has been mainly due to the increase in China's import demand.

Market reports say China is considering issuing new quotas for cotton imports and auctioning some state-owned cotton stocks.

If the new import quota is issued in the future, it will undoubtedly boost imported cotton, and the rebound of US cotton is also reasonable.

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< p > in addition, it is widely expected that the 2013/2014 cotton planting area will decrease, which is also good for us cotton prices.

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< p > due to the stronger performance of corn and wheat markets in the past year and the amount of cotton planted, the amount of cotton planted by US farmers in 2013 could be reduced to the lowest level in decades.

This will help reduce record cotton stocks.

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"P >" 2012/2013 a href= "http://www.91se91.com/news/index_cj.asp" > cotton price < /a > downturn will inevitably reduce the planting area of the American plantation owners, and the area may fall to a historical low.

Recently, capital speculation is also one of the important reasons for pushing up cotton prices.

Shanghai mid-term analyst sees thunder thunder.

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< p > < strong > ZHENG cotton rebound is less than that of cotton cotton < /strong > < /p >.

"P", with the strong uplink of US cotton, Zheng cotton also saw a wave of rising prices, and in January it has risen more than 4%.

Contrast can be seen that in recent years, Zheng cotton rebounded less than the United States cotton.

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< p > the main reason for Zheng cotton's rebound is that after more than 5 million 800 thousand tons of cotton entered the national reserve, the high-grade cotton in the market is scarce. Moreover, processing enterprises and traders basically pay for storage this year, so they do not need to sell hedge in the futures market, resulting in smaller bear power.

At this time, after the intervention of multi funds, prices will easily rise.

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< p > > why does the domestic cotton price increase less than the US cotton? East Asia Futures analyst Xu Zhou believes that there are two main reasons: first, the domestic cotton price itself is higher than that of the United States and cotton; therefore, the demand for us cotton technology rebound is even greater; two, considering the overall fundamentals, the overall domestic stock of cotton is still huge, and the rising rate is too large, which is likely to lead to the massive dumping and storage of the country's pressure.

After the deduction of China's inventory, the overall inventory of international cotton is much smaller. In the short run of domestic supply, import demand has increased, so the US cotton has rebounded substantially.

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< p > < strong > the first quarter of the global cotton price center or upward shift < /strong > /p >

< p > experts said that in the first quarter of 2013, the price center of the United States cotton and Zhengzhou cotton were lifted up.

However, apart from looking at the recovery of downstream demand, it is more important to look at the situation of China's cotton reserves and the issuance of import quotas.

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< p > Xu Zhou believes that as a whole, cotton has become more and more insensitive to the negative reaction after more than a year's low level consolidation, and the reaction to Lido will be gradually sensitive. The possibility that cotton prices will continue to rise will be greater, but the rebound will not necessarily be high.

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In the first half of 2013, the sale of China's cotton reserves will become normal, which limits the space above the cotton price to a certain extent. < p >

The bundled distribution of quotas or the benefits of imported cotton will be discounted.

Therefore, this year, Zheng Mian and the United States cotton or out of the "Mavericks" market, but do not have the "Daniel" basis.

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