US Cotton Exports Show Disappointing Cotton Price Trend In The Short Term

As we all know, because of the decrease in quota, China's import demand has declined significantly, and the demand of neighboring countries and regions has increased. Therefore, foreign businessmen are pporting bonded cotton to other regions, but the United States Department of agriculture has counted this part of cotton into export volume.

In the past month,

There has been a certain increase in the price. The price of cotton fell below 60 cents at the end of September, and the market demand increased significantly. In December, the contract rose to 64 cents with the rainfall in the cotton producing area of the United States.

However, due to the fact that textile mills in various countries are trying to reduce raw material inventories, market demand has not increased continuously, and weather factors have been rapidly weakening, ICE futures have fallen back from high to the consolidation in recent weeks.

As of October 23rd, the ICE futures contract returned to 62 cents in December.

According to foreign businessmen, import quotas have been redistributed this month, and some enquiries and purchases of foreign cotton have increased partly with imported demand. The main concern is the few high-grade cotton in the bonded area. But overall, the market turnover is still very sporadic, just to meet the immediate demand, and there are very few long-term purchases.

It is estimated that 1% of the tariff quotas have been used up to eight or nine. Under the condition of poor operation and unclear overall situation, the remaining quotas still need to be sped up.

The decline in China's demand is not only reflected in the decrease in imports, but also in the volume of exports.

There is a phenomenon worthy of attention.

The United States Department of agriculture will take China's monthly report in October.

The increase to 44 thousand tons has been maintained at 11 thousand tons for a long time. This adjustment is rather unusual at first glance. Where did the more than 30 thousand increase come from?

It is understood that the increased export volume comes from the bonded area.

As we all know, because of the decrease in quota, China's import demand has declined significantly, and the demand of neighboring countries and regions has increased.

Although this is not a true export, the United States Department of agriculture has counted this part of cotton as an export volume.

These cotton traders think that the cotton that can not enter the Chinese market has become a new official statement that USDA finds that consumption in China is decreasing.

At present, the new cotton harvest in the United States, Pakistan, India and China has entered the peak period. The supply pressure of the market has been increasing continuously, and cotton prices have been under a great downward pressure.

Although the poor quality of domestic cotton may bring some sales opportunities to high-grade cotton, especially cotton, the overall market demand is still very low.

Disappointing performance, the spot market is hard to provide stronger support for cotton prices, and cotton prices in the short term are going to be empty.