Current Situation Of World Cotton Industry

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The main characteristics of the world cotton production pattern after the two World War, namely, P > world a href= "http://www.91se91.com/news/index_c.asp" > cotton < /a > production, consumption and trade status, are: first, cotton production has been increasing rapidly since 50s, and has begun to grow slowly since 60s.

The annual growth of cotton production and consumption in the world has basically adapted to the growth rate of the world population, and has been adapted to the improvement of human living standards, and has been continuously balanced through the demand leverage of < a href= "http://www.91se91.com/news/index_s.asp" > International Trade < /a >.

Two, the total area of cotton planting has changed little. The growth of world cotton output mainly depends on the increase of unit area output.

Because of the high value of cotton, cotton producers pay more attention to the increase of cotton yield per unit area. China is the highest country of cotton yield per unit area, followed by the United States and Uzbekistan.

Three, the pattern of the United States, the former Soviet Union (displaced, currently replaced by Uzbekistan) and China's dominance of world cotton production has not changed, but the order has changed.

China has become the largest cotton producer since 80s.

At the same time, the number of cotton producing countries in excess of one million tons increased from 3 (the United States, the former Soviet Union and China) to 5, followed by China, the United States, India, Pakistan and Uzbekistan.

Four, in terms of raw cotton consumption, China is the number one in the world. However, in the aspect of raw cotton < a href= "http://www.91se91.com/news/index_cj.asp" > export volume < /a >, the United States is still the number one in the world.

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< p > in recent years, although cotton production in major cotton producing countries has changed considerably from year to year, the total output of international cotton is relatively stable, basically around 19 million tons.

Cotton, as a necessities of life, besides cotton producing countries consuming cotton, other cotton producing countries also need to consume cotton. The cotton they need must be obtained from the international cotton market. Even some cotton producing countries need to import cotton from the international market because they are also a big country consuming cotton. This forms the supply and demand relationship between the cotton producing countries and the non cotton producing countries and the cotton producing countries, forming the cotton trade between the world's import and export cotton market and the purchase and marketing of the cotton market.

In general, most of the world's cotton trade is concentrated among a few large countries. The five most exported countries and regions are the United States, Uzbekistan, West Africa, Australia and Greece. The total export volume accounts for about 65% of the world's total exports, and the US exports account for about 20% of the world's total exports.

Countries and regions that import more cotton are Indonesia, Mexico, Turkey, Brazil, North Korea, Taiwan and Russia.

In 1999, India, Italy and Japan also had certain imports.

Since the founding of new China, it has been a net importer of cotton. However, since 1983, China began to export cotton and imported cotton in 1988. After 1995, China's cotton import and export volume is relatively small, which is basically the same from the total.

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< p > at present, there are two authoritative cotton prices in the international market: one is the cotton futures price of the New York futures exchange, which is the only cotton futures price in the world at present, and it is also the main reference for governments to formulate cotton policies and the production and operation of cotton producers in various countries.

The two is the CoflookA and CoflookB index compiled by Liverpool cotton outlook company, which is the cotton's CIF price from the main ports in every major channel from the cotton outlook company every day. It is the actual paction price.

There are many reasons that affect the fluctuation of cotton prices in the international market, such as output, consumption, climate, economic prosperity, war, and chemical fiber prices. But in the current international cotton market, the "China factor" is a factor worth mentioning in affecting the cotton price trend. China's cotton output and import and export volume have great influence on the world cotton price fluctuation.

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< p > before the New York cotton futures exchange launched cotton futures trading, the price of cotton spot market fluctuated greatly, and the sudden imbalance between supply and demand would cause sharp fluctuations in prices and seriously impact on cotton production and trade.

In order to shift the inherent risks of the spot market, the New York cotton exchange in 1870 should be shipped, and cotton futures trading was launched in that year.

Over the past 30 years, 15 commodity exchanges have carried out cotton futures trading. The more famous ones are: Alexander Cotton Exchange (Egypt), New Orleans exchange (USA), Liverpool Cotton Exchange (UK), Bremen exchange (Germany) and so on.

Exchanges such as Japan, India, Pakistan, France, Brazil and Hongkong have also carried out cotton futures trading.

Besides the New York Cotton Exchange (now known as the New York futures exchange, referred to as NYBOT), cotton futures exchange is still in progress, and cotton futures trading on the other 14 exchanges has ceased.

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< p > with the continuous development of the cotton futures market, especially after 60s and 70s twentieth Century, the futures price of cotton in New York is getting more and more attention. Its function of evading risks and finding prices has been brought into full play. Cotton futures price has high authority in the trade and management circles, and has become an indispensable price reference for the cotton industry and the cotton producing country.

The US government subsidized farmers based on the cotton futures price of the New York futures exchange. The government of Mexico, in order to protect the interests of cotton farmers, came to the National Futures Exchange of New York to carry out hedging operations (mainly using options). The British cotton enterprises and the Australian cotton growers were also engaged in hedging pactions on the New York futures exchange.

According to Mr. Jin Bao, vice president of Alan, the largest cotton trader in the United States, if you do not hedge your spot trade by 100%, no one can resist the impact of changing price changes, and do not participate in futures. This means gambling, companies may go bankrupt at any time, and enterprises can not survive to today; but participation in futures is not limited to hedging. Large companies have information and predictive advantages, and can make profits through futures and options trading.

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