China'S Huge Cotton Inventories Increase Market Risk

< p > cotton trading price is 82 cents and 88 cents, and a href= "http://www.91se91.com/news/index_c.asp" > spinning factory < /a > seems to prefer this section.

However, many spinning mills can not find the future source of cotton.

At the same time, China has a large supply of cotton, while the supply of other countries and regions is tight, which has plagued the cotton market.

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John Robinson P, a visiting economist at A&M University in Texas, believes that China's reserve plan has absorbed large quantities of cotton stocks and increased market risks.

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P cotton analyst Cleveland said at the May meeting of the agricultural market network that cotton spinning mills are willing to buy cotton at 82 cents -88 cents.

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< p > Cleveland, Mississippi State University emeritus professor pointed out that at present, spot price rises, < a href= "http://www.91se91.com/news/" > cotton price < /a > encountered very strong resistance, because Asian cotton price in Liverpool index has risen to about 95 cents.

In the Intercontinental Exchange, the price of old cotton and new cotton futures contracts is close to 88 cents.

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< p > Cleveland says that the spinning mills are worried that if the cotton price can be sold according to the cotton price, they will withdraw from the market.

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< p > before the spinning mill returned to the market, the price dropped to about 82 cents to 84 cents, and then went up all the way.

Spinning mills are not interested in chasing high priced cotton.

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< p > Cleveland said that in May 10th, the price fell to 88 cents, and the market became very weak after second attempts to go higher.

On the one hand, this proves our expectation that 90 cents of cotton is a considerable problem.

We have talked about that for a period of time, and the cotton above 90 cents is a point. At this point, we will start losing the market.

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< p > it is reported that the 30 ring spinning, 100% < a href= "http://www.91se91.com/news/" > combed cotton < /a >, increased 9 cents / pound from last year, from 2 to 2.09 US dollars, while 30 50/50 polyester / combed cotton increased 1 cents from last year, from 2.27 to 2.28 dollars / pound.

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< p > cotton prices are falling, coincided with the US Department of agriculture's May supply and demand report. It is expected that in the next 2013-14 years, the world's cotton output will be 117 million 800 thousand packs. China expects to import about 12 million packs, 6 million less than last year.

US exports are estimated at 11 million 500 thousand bales.

The world's final inventory is estimated to be 93 million packs, a record high of third consecutive years.

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John Robinson, a guest economist at Texas P A&M, believes that China has placed its cotton stocks outside the market through its reserve plan, increasing the risk of the market.

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< p > Anderson is worried that China may decide to "slow down", withdraw from procurement, or release excess cotton supply, and the extra cotton is huge.

This could lead to a sharp fall in the market.

I think if China wants to do so, the market may fall to 60 cents.

In my career, I don't know how many times China suddenly made things that no one of us could think of.

The whole situation was disrupted, and China bought cheap cotton in about three years. "

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< p > Anderson pointed out that China holds about 63% of global inventories, while the rest of the world holds only 37% of its inventory.

"If they keep such a large inventory, the stock in other parts of the world will be very tight, and the market will at least maintain the present level, perhaps higher.

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< p > Cleveland said that because of the long drought in Western Dezhou, cotton prices are likely to go up step by step.

"Of course we may return to 90 cents, but I must say that the resistance of 88 cents is greater than before.

I also believe that the 82 cent downhill support is stronger.

As long as the price falls below 84 cents, we will see a lot of sales.

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< p > Cleveland pointed out that the price increase is approaching 90 cents, and there will be pactions. Some a target= "_blank" href= "http://www.91se91.com/" > textile "/a" factory has not yet made up for the 3 and 4 quarters of cotton.

So a lot of cotton will be bought. If the price is kept at 86 cents -87 cents, the textile mill will be satisfied.

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< p > Texas cotton growers, brokers and < a href= "http://www.91se91.com/" > cotton trader < /a > Kelli Merritt said that a large number of speculation funds were also part of the "a href=" http://www.91se91.com/ "cotton market" /a "regression".

They are making profits at the top and putting a heavy lid on the market.

But they return to the market at weekends.

They can't push prices up to 95 cents, but they provide strong support for 82 cents.

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