The Cotton Market Is At The Stage Of Full Transition.

Cotton prices have dropped to their lowest level in five years in recent days after China's massive acquisition of inventories and high cotton prices in 2010.

according to understand The cotton price for delivery orders in December this year is 49.69 euro cents (62.59 cents) per pound, which only goes back to October 7th of 2009.

China announced a reduction in imports, and cotton prices plummeted by 26% compared with last year.

The Commerce Department said a few weeks ago that the market was in full transition. Huge cotton stocks are sufficient to meet China's demand in the next 4 to 5 years. Only after this stage can China return to the market and push prices up again.

For the time being, one of the obvious consequences of low price and China's withdrawal from the cotton trading market is that India will catch up with China in cotton production.

India's cotton output reaches 30 million packs, compared with China's cotton output of 29 million 500 thousand bales this year, while last year's output reached 32 million packs.

　 　 Brazil Export volume increased in September and cotton planting area decreased next year.

In October 9th, Brazil national commodity supply company announced that the new flower production forecast for 2014/15 is 151.5-171.8 million tons, and 2013/14 production is still at 1 million 734 thousand tons. In addition, agencies predict that the next year's cotton planting area in Brazil will be 13 million 500 thousand mu, a decrease of 18% over the same period, which is lower than that of ABRAPA.

According to statistics, Brazil exported 146 thousand and 800 tons of lint in September 2014, an increase of 65 thousand tons compared with August, which is higher than the total export volume from January to June. As of September 30th, the total export volume of Brazil was 389 thousand and 300 tons this year.

　 ICE cotton rose in October 10th, driven by the US Department of agriculture's cotton production forecast.

The ICE cotton rose on Friday for second weeks, before the US Department of agriculture downestimated 2014/15's US cotton output and worried about the tight supply in the short term.

The US Department of agriculture's monthly report on supply and demand released a high of 65.50 cents in the ICE12 cotton market. After that, it cut sharply and increased 0.16 cents, or 0.3%, at 64.10 cents a pound.

　　 Ministry of Agriculture On Friday, US cotton production was estimated to be 16 million 300 thousand packages (480 pounds per pack), estimated at 16 million 500 thousand packages in September.

After the announcement of the Ministry of agriculture, the contract rose sharply in recent months, and then sharply increased. As traders digest global inventory forecasts were raised, it is expected to reach 107 million 100 thousand packages by the end of July.

Index cotton contract in December rose sharply in recent days, or more than the month contract, due to the current stock is less, and the United States harvest delay.

Since the beginning of September, the price of cotton contracts in December has been higher than that in March.

ICE's latest data showed that stock exchange fell to 16162 bales on Thursday, the lowest level in a year and 16179 packs on Wednesday.