India Hoarded Cotton To Support Cotton Prices

Farmers in India hoarded cotton, making buyers repurchase the United States. cotton It eased the worries that cotton might continue to fall, after cotton prices plummeted 10% in November.

Mike Stevens, a senior analyst, said last week that cotton demand in the US began to rebound and traditional buyers returned to the US cotton market, such as Indonesia, Mexico, Taiwan and Turkey. Last month, China's national reserves changed export data.

The increase in demand is partly due to price declines. New York's main contract in March fell to 88.50 cents on Tuesday, to a 14 month low, down about 60% from its record high in March.

However, buyers were encouraged by the increase in demand for high-quality cotton, and India farmers decided to hoard cotton, making it easier for them to hoard cotton. supply The volume is even more intense. India is the second largest cotton exporter next to the United States, and India farmers are eager to raise prices, so they are reluctant to sell cotton.

Buying pressure seems to provide support for cotton futures, which range from about 88-90 cents / pound and 94-96 cents / pound.

The United States Department of agriculture's agricultural counsellor in India confirmed that India farmers hoarded cotton, he said, farmers hope. market Strengthening or raising the minimum support price for farmers.

This week, the United States Department of agriculture's other cotton producing officials also reported that Brazil counsellors expected that in the 2011-12 year, the output of Brazil would be 9 million 500 thousand packs, which is 500 thousand packs higher than the US Department of agriculture.

Brazil's government added that Brazil's exports will double, reaching 4 million 100 thousand bales.

USDA officials in Beijing report that China is the world's largest cotton producer, consumer country and importer. The US Department of agriculture counsellor predicted the same figures as the US Department of agriculture, but he agreed with the Ministry of agriculture's website report that the next year's sowing area will be narrowed because of the prospect of a bad profit.

Although the government has tried to establish a minimum price to ensure that farmers have better returns, farmers are generally not satisfied with the current purchase price of seed cotton. According to the cotton grade, the purchase price is 7-8.5 yuan (1.10-1.34 US dollars) kg.

In addition, the Australian crop Bureau Abares revisited on Tuesday, with domestic production expected to record 1 million 100 thousand tons.