One Word: Demand Is Strong, Cotton Is In Short Supply, Cotton Prices Are Expected To Rise In The Future.

Recently, the international cotton price rose sharply after the sharp rise, the highest breaking 200 cents / pound pass.

In February 15th, China's National Bureau of Statistics announced that CPI data rose 4.9% in January 2011.

Taking into account the official readjustment of the weight ratio of CPI, I believe that CPI is still in a high position and shows that market inflation expectations are still in place and commodity prices will continue to be high.

According to the website data of Xinjiang Statistics Bureau, cotton output in Xinjiang decreased by 1.8% to 2 million 480 thousand tons in 2010, which is lower than the 2 million 600 thousand tons estimated by Xinjiang agriculture department in January.

Cotton production in China has been basically determined in 2010.

The decline in market supply will support domestic cotton prices.

According to customs data, China imported 392 thousand tons of cotton in January 2011, an increase of 31% over the same period last year.

After the Spring Festival, with the increase of cotton prices, the pace of stocking the domestic textile enterprises is speeding up, and to a certain extent, it also boosted cotton prices.

The domestic market is in great demand at present, and there is a big gap in the supply of cotton in the city.

The US Department of agriculture's supply and demand report in February showed that the estimated cotton acreage in 2010/2011 was estimated at 10 million 970 thousand acres, the same as estimated in January.

Prior to this, the National Cotton Association of the United States estimated that because of the rising cotton prices and the increasing farmers' planting area, the US cotton planting area reached 12 million 500 thousand acres in 2010/2011, the highest level in 5 years.

And the current market, the United States cotton more than 97% cotton has been sold out, domestic inventory is low, the market can be sold in the market less cotton.

India industry executives said that because of the decline in the yield of cotton planted by farmers in India, it is estimated that the estimated cotton production in the country has been cut down, or that the government has limited the export volume of cotton to 5 million 500 thousand bales. In addition, the government officials of the world's major cotton importing countries have shown that Pakistan will need to import 1 million 500 thousand to 2 million bales of cotton to meet the demand before June due to the summer flood damage to cotton production in 2010/2011.

The gap between the supply and demand of cotton in the international market will continue to widen, which will play a certain role in promoting the international cotton price.

The lower cotton planting area and inventory in the United States, the lower cotton production or the reduction of cotton export volume in India will cause the global cotton market to be in short supply, and the international cotton price will continue to go higher.

To sum up, the author believes that the change of cotton supply and demand in China market will have a greater impact on the global cotton prices. At present, the basic factors of domestic tight supply and strong demand will also have a strong role in promoting cotton prices. On the international market, India, the United States and other major cotton production volume, low inventory and restricted export will also push the international cotton price higher.

Therefore, after the US cotton will continue its innovative journey, Zheng cotton is expected to return to the rally.