India Cotton Quotes Had To "Keep On Rising".

The recent cotton market in India can be described as "windy and windy". The main contract of ICE has risen from 69.32 cents / pound to 75.37 cents / pound, and India cotton should rise. The direct result is not only that China, Vietnam, Pakistan, and other buyers are "far from home" for India cotton, and even India's domestic textile enterprises have "made a lot of inquiries" and signed a large number of inquiries, signing 2016/17 cotton, West Africa and even a small amount of Central Asian cotton. India domestic ginning plants and cotton exporters are trapped in "Besieged City", and turnover is falling sharply, and cotton prices are high. So what caused the India cotton to "go all alone"? First of all, CCI announced the temporary purchase and storage of the market, but it did not set the minimum purchase price according to the usual practice, instead, it adopted the market price.

Although the current storage capacity of CCI is very limited, it does not solve the problem of the actual sale of cotton in India, but it gives cotton merchants and market traders the confidence and opportunity to frantically hype. Secondly, India's new monetary policy is advancing slowly and its side effects are continuous. The progress of seed cotton and lint listing has declined significantly. The recharge of cotton prices and exporters has played a stimulating role in the rebound and inversion of cotton prices; third, the India rupee's continued depreciation of the US dollar has led to the continuous increase of India cotton quotations on the basis of US dollar valuation.

First, India cotton "Things are not beautiful, the price is not cheap", competitiveness is significantly lower than the United States cotton, West Africa cotton and so on. From 12 to 13 January, the quotation of foreign traders and traders showed that the shipping date of 2/3 month was the same as that of MOT GC21-2-37+, which was 1 cents / pound higher than that of GC21/31-2/3-37, while the difference between S-6 1-5/32 and EMOT SM 1-5/32 was narrowed to MCU5 cents / pound; the price of the SM was much higher than that of Burkina Faso, Mali and Uganda. Taking into account the characteristics of India cotton, such as roller cotton, large impurities, "three silk" high, length and fracture and other indicators, low consistency and so on, the interest of buyers of India cotton in international market is greatly reduced, and there is a lack of support for actual spanactions and exports, and India cotton is the most important factor. Price increase Where does the bottom come from?

Two, in the first half of 2017, global cotton fundamentals were more favorable than profits. As a result of 2016, cotton yields in the north and south hemispheres were significantly better than those in grain and other crops. Competitive crops With the increase in yield and planting subsidy, the cotton planting area in the US, Australia, Uzbekistan, Africa and other countries will have a clear rebound in 2017. Cotton planting in China, India and Pakistan will also bottom up. The global cotton supply or growth in 2017/18 will increase rapidly. Pakistan continues to ban import licenses for India cotton. Bangladesh and other countries try to import African cotton instead of India cotton, which is not good news for India cotton related enterprises.

Three, the export of India's cotton yarn is hard to speak smoothly, and the cotton mills in Vietnam, Pakistan and Uzbekistan continue to seize the share of India's yarn in the global market. According to the survey, the price of cotton yarn in India has increased by 6-8 cents / pound for more than a month. The quotation of FOB, CNF and CIF of the printed yarn in 2/3 months has risen all the way. The price of C32S knitting brand yarn has exceeded 2.75 US dollars / kg. The price of C10S-C40S cotton yarn, JC21 and JC32S yarn has been even or even higher than that of Vietnamese yarn, 0.02-0.03 dollars / kg, plus the low grade of cotton blending, insufficient yarn strength and high CV value, etc., and it is not the concern and favor of Chinese weaving factories and middlemen. According to customs statistics, in November 2016, China imported about 178 thousand and 800 tons of cotton yarn, an increase of 12.13% over the same period last year, an increase of 27.06% over the month, including 39.8% of Vietnam yarn imports and 12.7% and 2.5% of cotton yarn imports from India and Pakistan.

With the India cotton S-6 and MCU5 (31mm) quotes to break through 81.75 cents / pound, 84.25 cents / pound, the signs of involving cotton enterprises "lifting stones to hit their own feet" are becoming more and more obvious. Not only India's domestic cotton consumption is expected to decline more sharply (according to the latest monthly report of USDA, the cotton volume in India is reduced by 109 thousand tons to 5 million 62 thousand tons in 2106/17 year), and the export volume of cotton in India and India cotton inventory are increased by 44 thousand tons and 65 thousand tons respectively.

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