ICE Cotton Prices Continued To Fall, Continuing Downtrend.

On Tuesday, the global financial markets stabilized, the main economies index rebounded and commodity prices also rose. The US dollar weakened on Friday. ICE's deliverable cotton inventory dropped to around 110 thousand packages. The US cotton sales task was completed, and the demand for cotton flowers in Southeast Asian countries led by Vietnam was offset by some of China's growth. import demand The decrease helped cotton prices stabilize and rebound, but rebounding on Tuesday and Friday failed to recover. Cotton prices continued to decline as a whole.

ICE cotton price declines in the shade, which is the fifth consecutive week of negative results, and the price falls to an interval adjustment of 63 cents. This week, the main negative points: first, the negative impact of the macro side and the rise in the external market. The US dollar rose strongly and the Chinese stock market fell sharply by 8.5% on Monday. The largest one-day decline in the past eight and a half years was the largest single day decline. It also showed that China's economic growth slowed down. The European and American stock index and the Nikkei of the Dow Jones industry, standard & Poor's and so on showed a more sharp decline. Commodities were generally sold out, and cotton prices were also selling down. Cotton prices also fell with them. The two reason was the oversupply of cotton, which was the fundamental reason for the decline of cotton prices.

Data show that 2014/15 and 2015/16 have 110 million 960 thousand and 108 million 140 thousand packages of global cotton at the end of the year, and inventories are increasing. China's inventory is increasing. Currently, China is the largest cotton demand country in the world. Reserve cotton Stocks in more than 10 million tons, since July, the national cotton storage and export transactions slow, indicating that the time needed for inventory will still take a long time, the demand for cotton in the next year is difficult to grow, while demand in Southeast Asian countries has increased, but in the case of reduced demand in China, it also shows no bright spots. Three, the weekly sales data are poor. The US Department of agriculture's cotton export sales report shows that, as of July 23rd, the United States sold cotton exports in 2014/15 for 23300 weeks, and the main importing countries were Vietnam and Indonesia, which slipped 75% compared with the previous week, 75% lower than the previous four weeks, and 7 countries canceled the part. contract The export shipment of 168500 packs, mainly shipped to Vietnam, Turkey and Indonesia, decreased by 3% compared with the previous week, 10% lower than that of the previous four weeks, and three of the excellent cotton longevity in the United States and increased cotton cultivation in India. The weekly growth report of the US Department of agriculture showed that in the week July 26th, the growth rate of cotton in the United States was 57%, compared with 57% in the previous week, 54% in the same period last year, and 85% in the previous week, 76% in the previous week, 87% in the same period last year, 88% in the five year, 44% in the previous year, 33% in the previous week, 47% in the same period last year, and the average in the 47% year. The growth rate of American cotton is better than that of the same period last year, and the indicators are gradually improving. If the weather is not abnormal, the yield per unit area is expected to increase. The sowing area of India has increased significantly. According to the Ministry of agriculture of India, by July 23rd, the new sown area of India increased by 995.2 hectares (149 million mu), which was 31% higher than that of 761.33 hectares (114 million mu) in the same period last year. The India Cotton Association said that by October, the cotton stocks in India increased 25% to 7 million 390 thousand packages (170 kg per pack) than the 5 million 890 thousand packages in the same period last year, and the output will probably be close to a record 40 million pack next year. Poor macro face, high inventory carrying stock and excellent growth of new cotton continue to suppress cotton prices.