US Cotton Orders Fear To Become "Cannon Fodder" Textile Clothing Or Become The Next Target.

After the outbreak of Sino US trade friction, the main agricultural products exported to China, such as soybeans and cotton, have been greatly impacted. The price trend is at stake.

In June 19th, the market worried that the US cotton export orders to China had not yet been completed, and the order for ICE shipment would be cancelled. Cotton futures in second consecutive trading days were down.

As of June 7th, China signed a total of 2018/19 imports.

1 million 450 thousand packages (316 thousand tons), 2017/18 cotton 2 million 745 thousand packs (597 thousand tons), of which 464 thousand packages (101 thousand tons) have not yet been shipped.

Foreign analysts believe that the impact of China's import tariffs on US cotton in the short term will have immediate impact on US cotton exports. It is expected that the US cotton contract will be replaced by Australia cotton and Brazil cotton exports may turn to China, while the US cotton export destination will shift from China to Brazil.

In the long run, the impact of trade war on the cotton market is limited, and the global supply and demand pattern of cotton will not change significantly.

According to the current situation, if the United States continues to take retaliatory measures against China, importing Chinese textiles and

It is likely to be included in the list of US tariffs.

According to foreign sources, after the United States announced tariffs on China last week, the United States has begun to talk about the possible expansion of the scope and intensity of the Trump administration and the Levy of 25% tariffs on textiles and clothing imported from China.

From the data point of view, China exports $1 billion to cotton and cotton products to the United States every month, and exports to the United States in 2017 amounted to US $39 billion.

The United States believes that if 25% tariffs are added, it will generate about 9 billion 750 million dollars in foreign exchange earnings, which is equivalent to the total value of 21 million packages of cotton and cotton production.

According to Trump's attitude, the Sino US trade friction is likely to further escalate.

At present, Sino US trade friction has caused serious impact on agriculture in the United States.

Last week, US soybean futures fell to nearly a year low, with a weekly drop of 6.5%, equivalent to a loss of $50-100 per acre per bean farmers.

The cotton industry in the United States is actively consulting with the Trump administration. It is said that the US government may provide subsidies to cotton farmers, but there is no substantive action yet.

At present, the development of trade frictions between China and the United States tends to be serious, and the future of the cotton market depends on the development of Sino US trade frictions.