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    Textile And Clothing Trade Suffers From Pressure On Cotton Prices

    2019/8/7 12:26:00 2

    TextileClothingTradeImpactCotton PricePressure

    ICE futures fell sharply after President Trump announced a 10% tariff on the remaining 300 billion Chinese products. This will not only cause panic in the short term, but also bring great harm to the textile and garment market, and the demand for cotton in 2019/20 will be much lower than expected.

     
    The United States has added tariffs again to show that the Sino US trade negotiations have failed and China will not buy large quantities of US agricultural products including cotton. Affected by this, ICE futures contracted 5.12 cents per week in December, down nearly 8%, and for the first time in many years, it fell below 60 cents. International spot prices also declined, and the A ICE index followed the decline. Domestic cotton prices in India, Pakistan and China are also under pressure.
     
    The Sino US trade war has led to the destruction of the global trading system, and the demand for cotton in the new year is likely to be significantly lower than expected. The International Cotton Advisory Committee (ICAC) predicts that the global cotton consumption in 2019/20 is expected to grow by 1.7%, the output will increase by 6%, and the final inventory will increase by 300 thousand tons, to 18 million tons. According to the insiders, cotton exports from major cotton importing countries will be difficult due to the escalation of trade wars. The USDA has greatly overestimated global cotton consumption.
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