What Causes India Cotton Price "Not The Highest Only Higher"?

It is understood that, with the recent ICE, the cotton spot quotes "jump up and down" different, India ginning factory ex factory price, FOB and CNF, CIF quotation overall stabilized.

Although the US cotton, Central Asia cotton and other export contracts continued to "advance vigorously" (as of February 23rd, the US cotton signed 2 million 610 thousand tons of export volume in 2016/17, and completed 93% of the total annual forecast volume of USDA), which greatly reduced the share of India cotton in the international market. However, since March 6, 2017, China started the large-scale storage cotton rotation again, causing the middle line to suppress the export of low and medium quality India roller cotton. However, at present, the quotations of cotton FOB and CNF are still high.

On March 5 and 6 March, the CIF price of a India ginning factory in March was quoted as follows: S-6 M 1-1/8, S-6 M 1-5/32, MCU5 31mm and BCI Cotton BCI, respectively, 84.82 cents / pound, 85.21 cents / pound, 88.58 cents / pound and 85.98 cents / pound (cotton prices, ginning factory quotations are generally lower than international cotton merchants cents cents / pounds), India cotton prices "bite" is relatively tight, the bargaining space is generally only 0 cents / pounds, so buyers from short-term China, Vietnam and Bangladesh take "wait and see" for cotton cotton.

According to the India Cotton Corp data, as of the end of January, India exported 608 thousand and 600 tons of cotton, a decrease of 20% compared with the same period last year.

Some international cotton traders and buyers believe that as India cotton S-6 ex factory price rose from 71-72.5 cents / pound to 84 cents / pound in 1-2 months, the ginning plants and exporters believed that the signing price of 11/12 month was too low and they chose to break the contract, break the contract or postpone shipment. The textile factories in China and some Southeast Asian countries could only adjust their purchasing direction and find new cotton in a timely manner, so the actual export volume of India cotton in the 2016/17 year fell by more than 30%.

The reasons are as follows: first,

The progress of sales is slow and the contradiction between capacity and output is outstanding.

By the end of February, cotton farmers in India still had about 40% of the new cotton sale, and the seed cotton bullish sentiment was still strong. Limiting the quantity of resources to the market and keeping the purchase price "rising or falling" is the farmer's operation strategy, and the selling period is expected to stretch for more than 2 months. In order to maintain the production rush and purchase of CCI, the cotton mill has become the "meat and potatoes". Although the factory price and export price are high, the profit of cotton processing enterprises can only be considered "poor"; second, the signing of the US cotton and Central Asian cotton contract in February will soon be oversold, and India cotton will become the mainstay of the international cotton flower circulation market.

Although as of February 23rd, 2016/17

2 million 610 thousand tons of contracted products have been signed, and the remaining cotton resources are mainly flowers in the future. The performance is short of length, the strength of the fracture is declining, the color level is mainly M and SLM, but the enthusiasm for signing and purchasing the cotton mills and traders in China, Vietnam, Pakistan, Indonesia, Bangladesh and other countries is still rising. The demand has been thoroughly aroused. Chinese buyers have begun to place large quantities of 2017/18 cotton in the year of 2017/18; and by the end of February, Kazakhstan,

Turkmenistan and other places in Central Asia cotton are almost sold out (Kazakhstan cotton supply is less than 10000 tons), therefore, regardless of shipping time, distance, delivery timeliness and "cost performance", India cotton has a unique advantage; third, 2016/17, India, Southeast Asian countries cotton consumption showed rapid growth momentum, regional cotton supply pressure increased.

According to the prediction of India Cotton Association, cotton consumption in India this year is 5 million 15 thousand tons, higher than the data predicted at the end of last year, 85 thousand tons, much higher than that in 2015/16 consumption; and since February, the quantity of seed cotton and lint cotton has been significantly reduced and atrophied in Pakistan. Besides, considering the quality and grade of Pakistan cotton do not conform to the spinning of 40S and above high count yarn, it is more and more obvious that Pakistan releases strong demand, and India cotton is the first and only large quantity of supply.

For more information, please pay attention to the world clothing shoes and hats net report.