How Does The Market Price Of Cotton Run In 2016?

At present, the domestic cotton market continues to remain weak and stable.

The fact that the area and output double drop did not give much support to cotton prices.

In the context of high inventory, people are looking forward to the future.

The trend is full of worries.

Can cotton prices continue to decline in the 2015 since 2016?

According to the national cotton market monitoring system data, in 2015, domestic cotton output was 5 million 216 thousand tons, compared with 6 million 510 thousand tons in 2014, a decrease of 1 million 294 thousand tons, a decrease of 21.2%.

Cotton consumption in the same period also continued to decline. According to the latest estimates in December, domestic cotton consumption in 2015 was 7 million 150 thousand tons, a decrease of 400 thousand tons compared with last year, a decrease of about 5.3%, although cotton production dropped far more than the decline in consumption, but the end of 2015 will still be as high as 13 million 50 thousand tons, and the situation of high inventory has not been effectively improved.

The domestic cotton supply situation is not optimistic, and the international situation is not satisfactory.

According to statistics from the international cotton advisory board (ICAC), the global cotton output in reached 23 million 110 thousand tons and consumed 24 million 370 thousand tons. In addition to China, the inventory consumption ratio was 51%, and the supply and demand situation remained loose.

Therefore, at the end of December 2015, the central rural work conference and the national agricultural work conference put forward that we should focus on strengthening the structural reform of the supply side of agriculture, and promoting the restructuring of planting, animal husbandry and fishery.

Against this background, high storage pressure will force cotton prices to remain low in 2016.

Cai Yajun, chairman of Hubei Yinfeng group, said at the fourth China cotton industry elite forum: "it is expected that the market will be very difficult in the second half of 2016. Our acquisition processing plants and textile mills can win without losing.

We collected about one hundred thousand tons in 2015, and now we sell less than fifty thousand tons.

It can be seen that the situation of cotton supply has not changed much in 2016, and the driving force for supporting cotton prices is obviously insufficient. If there is no good news in the market, cotton prices will continue to go down a lot, especially in the stalls of cotton reserves.

How to adjust sales and procurement strategy is an important issue that cotton enterprises, operators and textile enterprises must face in 2016.