Analysis Of Supply And Demand Situation Of Foreign Cotton Market

At present, raw material inventory of textile enterprises is still relatively low. In order to maintain production, it is necessary to replenish stock continuously, but there is a shortage of cotton resources in the spot market.

India: cotton production is expected to be greatly reduced. According to the India Cotton Association news, because of cotton farmers to other crops, 2016/17 cotton planting area in India will drop to nearly seven years low, cotton production and export volume is expected to decrease. India Cotton Association predicts that the cotton planting area in India will be reduced by 7% this year, about 165 million mu, with an area of 178 million 500 thousand mu this year. It is understood that serious pests in the core cotton producing areas, the cotton price decline during harvest this year and the good wind and rain this year prompted cotton farmers to grow sugarcane, peanuts and legumes. According to the forecast of the India Meteorological Bureau, the rainfall in India's rainy season (6-9 months) is higher than the historical average this year. India exporters expect cotton production in India to be 5 million 440 thousand tonnes this year, down 7.3% from a year ago.

India: raise minimum support price. Recently, the lowest price of 2016/17 cotton seed cotton released by the government of India was 3860 rupees / kg, which was 60 rupees higher than the current year and 4160 rupees / weight for long staple cotton. The price has been implemented since the new year of India in October 1, 2016.

Australia: the government allocated huge sums of money to support cotton production. The Australian government has announced two funding support policies for cotton production, which is part of the $150 million national water infrastructure feasibility assessment and construction. The first is that the government provides us $650 thousand to assess the feasibility of using reclaimed water to expand agricultural production in southeastern Queensland. The area is likely to provide up to 1 trillion litres of high value added irrigation land for the darling hills.

　　 Australia Cotton Corp said that the use of large wastewater from Brisbane for irrigation will greatly promote cotton production in the darling hills and surrounding areas. Another financial support is an additional $60 million for the federal government's mobile communication program, bringing the total support to $220 million and completely solving the black spots in mobile communications. The government's additional $60 million investment is expected to completely solve the black dot problem in mobile networks, which is of great significance for improving the mobile communication in the cotton industry, and Australian agricultural production will benefit from it.

Pakistan: striving to achieve cotton production. The Ministry of agriculture of Punjab province of Pakistan is ready to eliminate all difficulties and increase cotton production. Farrukh Javed, Minister of agriculture of the province, said that the target of planting cotton in Punjab province is 34 million 620 thousand mu this year, and its output target is 1 million 615 thousand tons. Punjab's cotton output accounts for 70-80% of the whole country. In 2015, cotton production was reduced by 45% in the region. Javed said that the government is striving to crack down on the sale of counterfeit and inferior quality insecticides, cotton seeds and chemical fertilizers, and tries to control pest problems at the lowest level.

Egypt: cotton Output is halved. The US agricultural Counsellor's latest report shows that Egypt The government can not promise to provide strong support for cotton sales. Egypt's cotton planting area decreased by 50% to 750 thousand mu in 2016/17, and cotton production dropped from 86 thousand tons to the lowest level of 34 thousand and 800 tons, down 53% from the same period last year. According to the report, Egypt's cotton consumption in 2016/17 is 128 thousand tons, and imports are expected to grow 18% to 115 thousand tons, and export volume is expected to decrease to 26 thousand tons, down 20% from the same period last year. Due to the sharp decline in cotton production, Egypt's cotton exports in 2016/17 are expected to decline 20% compared to the same period last year, to 26 thousand tons, accounting for 80% of cotton output. Egypt's cotton imports are expected to grow by 18%, to 115 thousand tons, to compensate for the shortage of production.