The Huge Difference Between Domestic And Foreign Cotton Prices, China'S Purchase Of US Cotton To Expand Reserves.

Shoulder adjustment

In the face of the huge difference between domestic and foreign cotton prices, the national cotton reserve company, which balances the supply and demand functions of the market, is using the strategy of Wei Wei and Zhao to directly purchase cotton in the new year of the United States. The price of international cotton has soared more than 20% in 9 trading days.

As the world's largest cotton consumer, China plans to buy 1 million tons of new cotton to the us to expand its government reserves.

Since last week, the China cotton reserve management company, which represents the government's purchase and storage of cotton, has purchased 160 thousand tons of cotton.

At present, the price of newly produced cotton in New York is about 48% cheaper than the price of cotton traded by Zheng Shang.

Since the news, international cotton prices have been continuous.

Many days.

Statistics show that, on the 5 day, the US ICE cotton futures contract closed at 66.89 cents / pound in July, and as of yesterday's Asian trading session, the contract soared to 81.81 cents / pound. In just 9 trading days, the international cotton contract price soared more than 20%, which was surprising.

Imports are still accelerating in June.

According to the US cotton export weekly released by the US Department of agriculture in June 14th, the first net sale of the US cotton in the first week of June was 180 thousand tons, of which China signed a net contract of 168 thousand and 700 tons in the week.

94%.

In addition, statistics also showed that from September 2011 to May 2012, China's total import of cotton 4 million 252 thousand and 900 tons, an increase of 2 million 162 thousand and 200 tons, an increase of 103.43%; in 2012, 1-5 months, China's total imports of cotton 2 million 579 thousand and 300 tons, an increase of 1 million 373 thousand and 400 tons, an increase of 113.9%.

In the case of huge domestic reserves, large scale imports are still being carried out to absorb global inventories. What is the reason? Analysts expect that the intention of stabilizing the cotton prices is very obvious in the context of the sharp fall in domestic and foreign cotton prices.

"Very much agrees with the government's massive import of cheap cotton.

The annual volume of international cotton trade is 8 million tons, China accounts for more than 50%, and domestic textile imports account for 80%.

If the government purchases 3 million tons, together with domestic storage and purchase, it will inevitably increase the cost of global cotton, especially the domestic sliding tax base point of 14000 yuan.

In this way, we can achieve the goal of saving the cotton and weaving industry, and realize the basic cost of cotton production inside and outside the spinning enterprises.

Dong Shuzhi, deputy general manager of the cotton business department of Peking University Founder group, said.

At present, China's cotton inventories account for 75% of the world's inventory this year, and most of them are in the national reserve.

In April of this year, cotton prices plunged at home and abroad due to fears that the state would throw large quantities of reserves and ease imports.

Since April this year, international cotton prices have fallen by nearly 20%, the lowest level in more than two years.

Domestic cotton prices have also fallen below the minimum purchase price.

"As China has mastered more and more resources, cotton prices are likely to fluctuate because of China's policy control measures."

In June, the International Cotton Advisory Committee (ICAC) said that in the future, how China will regulate and control the market will largely affect cotton prices.

If China's reserve cotton stocks continue to increase substantially, China's import demand may exceed the current forecast, thereby supporting the international cotton price.

It is worth noting that the government of India has announced recently that it will raise the minimum supporting price of cotton in 2012/2013.

Among them, the lowest supporting price of medium and long fiber cotton increased by 28.57%, to 3600 rupees / =50 (a kilogram of kg), and the lowest supporting price of long fiber cotton increased by 18.18% to 3900 rupees / bears. Compared with last year, the lowest supporting prices were 2800 rupees / bears and 3300 rupees / bears.