India And China Cool Down Global Cotton Prices

< p > China and India, the two largest producers in the world, "a href=" http://www.91se91.com/news/ "sell cotton < /a >, should ease the tension in supply of cotton and help cool global prices. Since this year, global cotton prices have soared by 20%, partly due to the strong demand of Asian giants for hoarding cotton.

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< p > ICAC executive director of International Agriculture Organization Terry

Townsend said Wednesday that China, the world's largest cotton consumer, expects to sell about 3 million tons of cotton from about 10 million tonnes of state reserves this year.

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"P," he told Reuters in Singapore: "we expect that China's inventory will be reduced to 7 million tons by the end of the year."

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< p > in India, an official of the national agricultural cooperative marketing alliance said that India's decision to sell cotton stocks should start in April.

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To ensure farmers' profits, India and China both buy domestic cotton, but this seems to have a side effect, which has squeezed profits from textile mills because of soaring P prices.

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< p > China's domestic price is 50% higher than world price and India's price is almost the same. In comparison, generally speaking, the price is about 5-7 cents / pound lower than the international price.

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< p > China's inventory is expected to account for more than half of the world's surplus, although according to the US Department of agriculture, inventories should reach a record high by the end of July.

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< p > speculators expect that China will continue to purchase cotton in large quantities, so their investment promotes US cotton futures to climb to a high of 93.93 cents per pound last week, but still far below the historical high of 2.20 dollars / pound in March 2011.

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On Wednesday P ICE cotton fell due to fears that the government would release inventory and curb demand.

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Peter Egg Lee, director of risk management at Cong cotton limited, said that it reminded people that cotton could flow into the market, too, P said.

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< p > cotton merchants and American textile mills said that due to continued strong export demand, the spot supply was tight and cotton prices rose in the near future.

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Townsend, less than P ICAC, says that the current price level is only supported by China's reserve policy.

If reserve policy does not exist, today's price will be 60-70 cents / pound.

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< p > > a href= "http://www.91se91.com/news/index_c.asp" > the US Department of agriculture < /a > expects that by July 2013, cotton consumption will increase by 4% this year, which will still be 12% lower than that in the peak period of 2005-06, partly due to the high price and the weakening of cotton competitiveness.

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< p > Townsend added that cotton needs to drop to 70-80 cents / pound before it can compete with polyester.

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< p > India will sell 2 million 500 thousand bales (425000 tons) of cotton stock. By September 30, 2013, the total output of cotton in India is expected to be 33 million bales. The domestic textile mill usually consumes about 2600-2700 packages.

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< p > Sambandam Joint Executive Director of spinning mill S.

Dinakaran said that this will support industry and stabilize prices and restrain prices from rising.

He added that individual traders might also sell stocks to prevent prices from falling.

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< p > he expects cotton prices to drop by about 1000 rupees / candy from the current price. Currently, the largest volume of Carle 6 trading is at 38500-39200 rupees.

Candy (356 kg).

Spot prices hit a record high of 62000 rupees in March 2011.

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The two countries may also import cotton to reduce domestic prices. < p >

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< p > according to well-informed sources, China may double its import volume, and cotton imports will be close to 1 million 700 thousand tons in April, which will help textile factories export textiles.

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< p > < < a href= > http://www.91se91.com > > India textile > /a > Industry Association. India will also import cotton. The import volume in 2012-13 years will probably increase by about 2/3.

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