International Cotton Prices Become More Relaxed, India Appealed To Liberalize Cotton Yarn Imports

The latest monthly analysis of the US Cotton Corp said that the international cotton price range has been consolidated in the past month. The ICE futures contract in December declined slightly after the announcement of the monthly report of the US Department of agriculture and fluctuated between 72-74 cents. After climbing to 74-78 cents in the recent period, it fell 2 cents again.

Meanwhile, the A is running between 82-86 cents.

The price of cotton and other crops, such as corn and soybeans, runs counter to the fact that the cotton planting area in 2013/14 will be significantly reduced and may lead to a reduction in the supply of cotton, which provides a certain support for cotton prices.

However, if cotton prices continue to rise, the fundamentals of cotton must be tightened properly.

The US Department of agriculture's monthly report in September increased the world's final stock by 414 thousand tons, and the inventory consumption ratio rose to 71.1%, and cotton fundamentals relaxed again.

Global output has changed little, India's output has slightly increased, and output in Brazil and the United States has been reduced slightly.

Global consumption has been cut by 130 thousand tonnes, to 23 million 427 thousand tons, the lowest level since 2003/04.

Among them, the amount of cotton used in China was reduced by 218 thousand tons, to 8 million 270 thousand tons, down 25% from the peak in 2007/08.

The high domestic cotton prices in China prompted a large number of domestic cotton mills to import cotton yarn, and imports in July reached a record high.

At the same time, the market share of cotton is also replaced by chemical fiber products, and its negative impact on cotton consumption is very obvious.

India appealed to liberalize cotton output or continue to raise cotton yarn imports

India

The Export Promotion Association (AEPC) recently sent a letter to the government to urge the government to introduce measures to curb the rapid rise of cotton yarn prices.

According to AEPC, cotton prices in India increased by 3-5% in recent two months, while cotton yarn prices increased by more than 15%, resulting in many small garment factories overburdened.

As the export growth is too fast, the price of cotton yarn in India is obviously higher than that in other countries.

At present, the output of cotton yarn in India is 3 billion 500 million kilograms, while the export volume is 920 million kilograms.

According to the current situation, the export volume of cotton yarn in India is likely to exceed 1 billion kilograms.

AEPC believes that the government should restrict the export of cotton yarn, or release the import of cotton yarn, cancel the import tariff of 10% cotton yarn, and also refund the tax on imported cotton garments.

Since September, the total rainfall in central, southern and Western India has been the highest in two years. The rainfall since this week has exceeded 20% of normal level. The core cotton producing area is two times the normal level of Gujarat.

At this point, the difference between the total rainfall in India and the same period last year has narrowed to 8%, and the impact on cotton production has obviously weakened.

India's domestic cotton prices began to fall due to increased rainfall.

The US Department of agriculture's monthly report just raised India in September.

Output, if the late rainfall is adequate, India's new cotton production forecast is expected to further increase, exceeding the current forecast of 5 million 330 thousand tons.