Inflation In The United States Has Reached A New High, And International Cotton Prices Continue To Run At High Risk

Inflation in the United States reached a new high, the market turned a blind eye, and international cotton prices continued to run at high risk.

At a time when U.S. inflation hit new highs in April and may, the market turned a blind eye to the inflation risks implied by a series of indicators, pushing up the asset price risk. Some economists also issued inflation warnings, worried that the Federal Reserve could not cope with it well. At present, there are differences in the judgment of whether the Fed will raise interest rates or not, causing ups and downs in market sentiment. In terms of international cotton market, the growth of American cotton has recovered. As of June 6, 46% of American cotton grew well, with a year-on-year increase of 3%.

From the perspective of cotton seed sales did not decline, India's new cotton planting was not affected by the epidemic situation; Recently, a small amount of new cotton has been listed in Sindh province of Pakistan in 2021 / 22. The US Department of Agriculture reported in June that the global cotton production in 2021 / 22 will be reduced to 25.881 million tons, an increase of 4.6% year-on-year, and the consumption volume will be increased to 26.679 million tons, with a year-on-year increase of 3.8%. Recently, the epidemic situation in India and Pakistan has improved, and textile production in Southeast Asia will recover. The performance of textiles and clothing in the United States and Europe continued to be differentiated, with a good growth in the United States and a sluggish EU market.

To sum up, the recent global financial market reflects the risk and instability, and the market turbulence continues, so it is difficult for the international cotton price to be alone.