The Global Cotton Planting Area Is Decreasing, And Cotton Prices Are Rising.

< p > according to some foreign businessmen and importers, the United States Department of agriculture's monthly report in March raised the export volume of US cotton and global consumption and lowered the global inventory of < a href= > //www.sjfzxm.com/news/index_f.asp > cotton > /a > end inventory. The domestic cotton price in India climbed to 38000 rupee /candy on the 7 day (88.5 cents / pound), while in the early March of China, < a href= "//www.sjfzxm.com/news/index_q.asp" > National Cotton store < /a > bid for the three grade cotton price had always been in the range of 19100-19200 yuan / ton.

A cotton trader in Singapore said that the price quotas of India cotton S-6 had exceeded 92 cents / pound, and 40% of the total tariff clearance price had been higher than the domestic dumping level three grade cotton. In addition, at present, except for the import quota of cotton within the 1% tariff, the import quota and import quota of processing trade were not clear. The import quota was very tight. Some large and medium-sized cotton mills increased the intensity of the cotton picking from the national cotton auction. The price was too high and the quota policy was not clear, which seriously restricted the demand of foreign cotton for the cotton business. "CIF"

Several medium-sized importers from Qingdao and Zhangjiagang indicated that since last week, the turnover of cotton, especially India cotton, has declined greatly, and there are few shipments of individual cotton traders.

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< p > with the price increase of ICE and India cotton, the contract for delivery in the second half of 2012 has been postponed to the first half of 2013, and some traders have placed orders for 80 cents / pounds in India cotton. From the surface price, if these contracts are executed and sold, some large and medium-sized importers with larger losses in 2012 will have more or less chance to turn over. But it is worth noting that with the continuous increase of domestic prices of India cotton, the proportion of contracted delivery of domestic cotton ginning plants and traders in India has obviously declined, and some India cotton suppliers unilaterally break the contract. The contract for shipment from the end of February to the middle of March can not be carried out.

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< p > a Zhejiang importer reflects that the company has ordered 2000 tons of India cotton through an international cotton trader at about 82 cents / pounds. The contract has agreed to arrive in India in late March. However, because of the fact that the India ginning factory refused to deliver the goods, the international "href= //www.sjfzxm.com/news/index_c.asp" > cotton trader < /a > broke the notice.

Another noteworthy case is the rumour that the government of India has stepped up the export of lint cotton or that it will introduce restrictions on cotton exports recently. Some India suppliers and foreign businessmen have made an excuse for domestic importers to rescission of the procurement contract.

According to the relevant departments and arbitration institutions, since the end of February, there has been an increase in contract disputes between Chinese importers and some foreign suppliers.

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< p > some traders have analyzed that the main contract of ICE is expected to test 89 cents or even 90 cents on the basis of a series of positive factors such as speculative fund, upstream agricultural commodities and favorable export of US cotton, the decrease of the global planting area and the United States to maintain a loose monetary policy. However, because of the unfavorable phenomenon of the rising demand for cotton prices and the aggravation of the Chinese government's plan to throw 4 million 500 thousand tons and the false prosperity of the economic recovery, the ICE gains in the medium and long term are relatively limited, and the possibility of callback after March is not ruled out.

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