Home >

Worries About China'S Cotton Market And Global Cotton Market

2013/11/13 13:38:00 36

China'S Cotton Reserves Cotton Futures Cotton Futures

img border= "0" alt= "align=" center "src=" /uploadimages/201311/13/20131113014225_sj.JPG "/" < < > >
Less than p ago, WSJ quoted traders as saying that China will release part of its 10 million tons a href= "http://sjfzxm.com/news/index_c.asp" > cotton reserves < /a > by the end of the year. The speculation comes from a recent meeting of China cotton reserve management corporation. The meeting announced that it would implement the national development and Reform Commission's policy in early October this year, calling for "strengthening the management of the cotton market" and "ensuring the supply of purchasing funds". 
 this news has brought about great waves in the market. Insiders predict that the cotton store will announce the sale of cotton at the end of November or early December, which may shake the global cotton market. Market participants believe that the current state cotton stocks are large and need to be eased. This is one of the reasons for the launch of the reserve store. The possibility of launching the national cotton reserve will be very high at the end of the year. 
 as the world's largest a href= "http://sjfzxm.com/news/index_s.asp" > cotton < /a > consumption country, China began to store cotton from the end of 2011, so as to stabilize the market supply. According to estimates from the US Department of agriculture this summer, the reserves of China's State Reserve Bureau are up to 10 million tons, accounting for 60% of global cotton stocks. Liu Hua, general counsel of China Central Cotton store, said in mid July that China plans to cut more cotton stocks in the next three to more years. "On the other hand, dumping is also based on the needs of downstream enterprises." At present, there are not many quotas for the imported cotton, but the import quota has not been released in the next year, and most of the domestic cotton is sold by the state. 
Behind the rumours of dumping, P also seems to reveal another message: China's sale of reserve cotton will mean a reduction in demand for us cotton. 
 in fact, the Central Cotton store has begun to reduce the purchase of cotton. Customs data showed that China imported 323 tons of cotton in 1~9 month, down 20% from the same period last year. 
This year, government signs show that the quota of imported cotton may be tightened next year, which means that more national cotton stores will be sold to meet domestic cotton demand. P 
 although the storage has not been started yet, its effect has begun to ferment. China's purchase of cotton has been supporting the international a href= "http://sjfzxm.com/news/index_s.asp" > futures < /a > price, but last week, benchmark ICE futures fell 0.8% to 75.95 cents on the US exchange cotton futures. Over the past two weeks, cotton prices fell by 8.6% to 10 month lows. A brokerage firm in Chicago expects that cotton prices will be far below 70 cents by the end of this year. 
Less than P, traders in China have been busy closing their cotton positions on the Zhengzhou Mercantile Exchange, which is expected to cause a sharp decline in domestic a href= "http://sjfzxm.com/news/index_cj.as" and cotton futures < /a > prices. 
 according to the analysis, the downward price of domestic cotton price depends on the price of throwing cotton, but the downward range is limited. The price of throwing and storing cotton may be lower than the reserve price, which is about 18000 yuan / ton.