Global Cotton End Inventory Continued To Decline In 2017/18

The monthly analysis of the US Cotton Corp believes that the international cotton prices continue to rise as a whole in recent months.

ICE futures and Caunt Luke index have seen a few ups and downs near 78 cents and 87 cents.

China's spot price is stable at around 16000 yuan, while Zheng cotton futures fluctuated greatly, and India S-6 rose from 80 cents to 83 cents.

The price is stable at 78 cents.

The USDA agriculture Outlook Forum predicts that the end of global cotton inventories in 2017/18 will decline for second consecutive years, and the decline is the same as this year. This should drive cotton prices to continue to rise. However, even if China's reserve cotton inventories in 2015/16 and 2016/17 continue to decline significantly, the end of the year inventory is still 50% higher than that of ten years ago.

At that time, the world

Over 60 million packs, the Klock A index is 50-60 cents.

If global inventories continue to fall sharply next year, the market will take a bigger step towards the direct impact of inventory on cotton prices, which may take several years. The key lies in the digestion of China's stock and whether the stock in China and elsewhere can be melted together.

In this year, China's end of term inventory is expected to drop from 58 million 200 thousand packages to 48 million 900 thousand packages to 9 million 300 thousand packages, and the USDA Outlook Forum is expected to reduce so much in 2017/18, which requires a high level of reserve cotton turnover.

In March 6th, China began a new round of sale of reserve cotton and plans to extend the storage time if the demand is strong until the end of August.

Like last year, so far

The auction is still very active.

Almost all the pactions were made in the first week.

The price of the cotton yarn market declined, and the quotations of the manufacturers were basically stable, with a partial reduction of 300-500 yuan / ton.

At present, the 30S of ring spinning is less than 21300-21500 yuan / ton, and the 40S of siro spinning is lower, which is 23500-23800 yuan / ton.

The downstream purchase is light, and the stock of the mill has increased to varying degrees. The market is still good.

Viscose staple fiber market price sideways finishing, continued stalemate.

Viscose factory in its own pre orders and export situation is good, part of the limited production, delivery is still tense.

In terms of price, the mid-range quotation is 17400-17600 yuan / ton, the high-end quotation is 17700-17800 yuan / ton, the local traders are shipping positively, and the middle end goods price is 17100-17300 yuan / ton.

The price of cotton yarn in the lower reaches has dropped, thus reducing the latter's Viscose, and the market wait-and-see atmosphere continues to heat up.

Viscose sideways finishing, cost surface support is relatively stable, but the market inquiry paction atmosphere is not good, demand gradually into the off-season, it is expected that the future cotton yarn will continue stable trend.

According to the forecast of the USDA Outlook Forum, the inventory outside China in 2017/18 will increase by about 3 million packages for second consecutive years, bringing pressure on cotton prices.

However, judging from the price trend of this year, unpredictable factors such as policy, spot price and speculation will also affect the trend of cotton prices.

For more information, please pay attention to the world clothing shoes and hats net report.