The Impact Of The Global Cotton Yarn Market

The United States:

China

Cotton prices in New York, which have been hit by the bumper harvest of cotton in the United States, are on the rise. Cotton on Wednesday (24/9/2014) fell to its lowest level since 2009, and cotton prices continued to recall the accumulated gains in the past five years, which had been boosted by China's massive purchase and storage, and had been reported at $61.57 a pound.

This is for hope.

The US farmers, who have continued to rebound, have the biggest impact, which has fallen below the profit and loss balance in the US households.

It is even more worrying that policy adjustments may damage Global trade and curb demand.

The US government predicted that China's imports of 2014/15 crops will be 8 million packs per year, and China's planned imports will be almost half the estimated value of the US government.

Farmers in the United States say they may not grow cotton next year, and grow better priced sweet potatoes and tobacco.

The adjustment of China's cotton policy has affected the production and export of India's cotton yarn. If the price difference of policy is lower than that of the previous market, the import demand of Chinese cotton yarn has been reduced, while the export of India and Pakistan to cotton yarn in China has also declined significantly. However, China's policy of cotton and cotton yarn is shields, which sets aside more room for rotation.

However, downstream industries, such as knitting enterprises, have certain demand for the three cotton yarn for the US and Australia cotton bleaching yarns, and the cost price is absolutely predominant in India and Pakistan on the production of coarse yarn.

This wave made the international cotton price plummeting, making other countries, such as Vietnam and Indonesia, cheaper in terms of cotton cost and lower production cost. The competition of cotton yarn prices at home may cause greater pressure on domestic cotton spinning enterprises.

The impact of short-term domestic and foreign markets:

New York's cotton CTH4 in March will probably fall below 60 cents. Cotton prices will continue to reflect the cumulative gains over the past five years, and cotton prices have dropped 25% since May.

It is expected that cotton prices will continue to fall as China digests cotton stocks, which makes it difficult for domestic customers to make loans to buy cotton, because banks will worry that customers hold high priced cotton stocks, which will further pressure cotton spinning enterprises.