China'S Policy Or Import Cotton Surge

An experienced industry insider said that the uncertainty of the change in China's agricultural subsidy policy may increase the demand for imported cotton in 9-12 months. China is the largest in the world. cotton Producers and consumers.

Ed Jernigan, President and chief executive officer of Jernigan Global Commoditie, said the outside world was "at a loss" for China's new agricultural subsidy policy.

　　 Jernigan It is said that textile mills will need to purchase or import new cotton from the domestic market starting in September, because the inventory is low and the quality of the government's huge cotton reserves is not high. The CEO provides advice on textile supply chain management.

"If you can get it," he said. quota China may unexpectedly increase imports to meet demand. "

The Chinese government is preparing to replace the policy of purchasing and storage in 2011 with the subsidy scheme of agricultural products, but has not released all the details. This is a concern about when and how the domestic textile factories will buy new domestic supplies.

If China's demand soared, it may bring a glimmer of hope for us farmers who are facing a bad prospect, because the United States has a bumper harvest of cotton and China's policy of purchasing and storage policy is threatening to reduce the country's demand. China is the largest textile market in the world.

But Jernigan said he thought the market was "empty". It is estimated that the US 2014/15 supply will reach the high end of the 16 million -1750 package forecast interval because of the good growth conditions of crops.

In the week of July 25th, New York cotton CTc2 was hit by a sell-off of speculators and dropped to a low level in June 2012.