Cotton Prices Continue To Fall In India

In order to protect cotton prices, India's state-owned Cotton Corp (CCI) plans to purchase 85-119 tons of cotton covered with leather cotton at the lowest protective price (MSP) in 2014/15 this year.

At present, CCI has acquired 850 thousand tons.

As the second largest

The export of India, especially the main market facing China, has largely supported global cotton prices.

However, unlike India, China usually stores the cotton stored and stored in the year to the next year.

along with

In January, India's domestic cotton prices continued to fall, which has dropped to 62-63 cents / pound.

This has increased the plight of India's policy.

Since January, India has repeatedly claimed to be dumping, but it has been postponed repeatedly.

Recently, the latest news.

The state-owned Cotton Corp (CCI) plans to compete for 867 tons of cotton. The cotton varieties are classified as high grade BunnyBrahma, with a length of 31mm, a horse value of 3.5-4.8, and a price of 70 cents / pounds.

The first day was 187 tons, and the price was 70.4 cents / pound.

Due to the auction for high-grade cotton, the price is higher than the market price, some textile enterprises in the early stage need to replenishment, and the follow-up paction needs to be concerned. If the auction price stays high, the impact on the international market will be limited.

In December of this year, the India Cotton Association arrived at the Chinese port in large numbers, but the volume of port arrivals this year dropped significantly.

First, India's new cotton market is pushed back, and the two is that the price has little advantage.

On the whole, India's current policy is only to push the pressure back. If the domestic cotton price in India falls below 50 cents / pound, the price of the main port in China will fall to 60 cents / pounds. Chinese textile enterprises may import India cotton through customs duties.

According to statistics, in December, China imported 54 thousand and 800 tons of cotton from the United States, down 21% from the same period last year, and imported 78 thousand tons of India cotton, down 77% from the same period last year.

On the whole, China's recent imports have been at a low level, but the decline of cotton in India is particularly serious.

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At present, the processing of American cotton is coming to an end. As of January 15th, the United States has processed 3 million 410 thousand tons of cotton in 2014, up from the same period last year, and has basically entered the finishing line.

According to the US Department of agriculture (USDA), as of January 15, 2015, the United States has signed a total of 1 million 950 thousand tons of cotton for the 2014/15 year, including 1 million 910 thousand tons of land cotton, 679 thousand tons of shipment and 34.78% of shipment.

China signed a total of 458 thousand tons of cotton and cotton, accounting for 23.5% of the US cotton exports, and shipped 160 thousand tons, accounting for 23.6% of the US cotton trade volume, accounting for 34.9% of China's contracted volume.

USDA expects us cotton exports to be 2 million 82 thousand tonnes this year. If this is expected, the US cotton has sold 92% of cotton. At present, there are still 28 weeks in the current year, so the US cotton will be able to complete sales as long as it exports 6000 tons a week.

However, considering the increase in US cotton production this year (output 350.2- US consumption 82.7- exports), the current export forecast is likely to increase.

In addition, China's imports of US cotton also increased compared with the same period last year.

This is because cotton prices in India cotton have been kept high this year, and the relative competitiveness has declined.

Therefore, the United States cotton snatch the market share of India cotton.

The sale of China's textile mills has been postponed from this year's sales.

Since the middle of 2014, cotton prices at home and abroad have continued to decline, and futures prices have fallen more sharply, falling below 13000 in advance. Therefore, textile enterprises generally expect to use low price cotton after the beginning of the new year.

But after entering September, Xinjiang's seed cotton purchase price dropped sharply compared with the previous year. Farmers were reluctant to sell and scale back.

After entering the new year, the quantity of foreign cotton arrivals continued to decline, so domestic supply was in short supply.

It also promoted a rebound in prices.