What Inspiration Does India Cotton Have To Play In The Cotton Market?

India cotton

Playing an important role in the world, from the data point of view,

(this year is likely to become the second cotton producing country in the world, the first is China).

India at the same time

India in the world

Having such an important position is bound to have an important impact on the cotton pattern of the world. Ignoring or ignoring its importance is wrong.

In recent years, the India government has introduced the cotton MSP policy (that is, the India version of the cotton purchase and storage policy), which has led to its growing influence on world cotton prices.

It can be said that in recent years, the MSP price of cotton in India has been determined.

The bottom line of the price.

Therefore, understanding the trend of India's cotton market is helpful for studying the international cotton market and making an accurate judgement of the domestic cotton market.

So, this year, India

According to the information provided by cotton traders in India, what are the following points?

Because of the lack of rainfall in the cotton producing areas this year, the output of cotton has been reduced. Cotton can only pick two crops. India farmers are very reluctant to sell. At the same time, the India government has increased the MSP price of cotton again, which has exacerbated the sentiment of farmers reluctant to sell.

Cotton production in the current year is estimated at 33 million packages (5 million 610 thousand tons), which was 37 million 500 thousand packs (6 million 370 thousand tons) last year.

India textile enterprises are relatively normal in terms of production and operation, but they are not bad at all.

Inventory in about 15 days, inventory level is very low, there is a strong demand for replenishment.

Everyone, including cotton farmers, believes that the cotton MSP policy will be strictly enforced before next year's general election.

Everyone is convinced that cotton prices will run above the MSP price.

Now Bangladesh and Pakistan can accept the price is very good, there are a large number of orders to buy India cotton, so India cotton exports to Bangladesh and Pakistan are very good.

Looking back on history, we can also find an interesting phenomenon. In recent years, the price of cotton in India has not yet fallen below the MSP price. There are many reasons for it, but it is also very complicated. Nevertheless, MSP has strong support.

Although China's cotton market is very low in the world, cotton prices are falling steadily, but India

But the scenery is good here.

If we make a general summary of India's cotton market, I have the following conclusions:

First,

This year, India cotton will not play a role in helping the gloomy global cotton market, and it is likely to play a role as a stabilizer.

Two.

At least until next May, India

The price is not easy to fall below 84 cents / pound (S-6 China's main port, 90 day l / C price) unless India rupees depreciate substantially.

For enterprises that have to purchase India cotton, they should choose the right time to purchase.