The Global Cotton Removal Process Has Accelerated Significantly.

In recent months, cotton prices in China and India have risen sharply, and China's cotton prices have risen from 87 cents to 93 cents. India's S-6 price has risen from 73 cents to 83 cents.

Cotton prices in Pakistan rose from 65 cents to 68 cents.

According to reports from overseas analysts, from mid June to mid July, ICE cotton futures contracts rose from 12 cents to more than 70 cents, which is slightly higher than the same period of last year's 65.

The A index also rose from 75 cents to more than 77 cents. The current price is also slightly higher than last summer's highest level.

The US Department of agriculture forecast in July to reduce the global cotton output this year and next year, increasing the global cotton consumption this year and next year, which led to a double decline in the global end inventory in the current and next year.

Although 81.8% of the inventory consumption ratio is still twice that of the historical average, the reduction of global inventories shows that the process of global cotton stocktaking has accelerated significantly.

The recent rise in cotton prices has been achieved.

This is especially true in India, where domestic cotton prices have risen by 15 cents in one month.

After exporting a lot of cotton to Pakistan, India was forced to rely heavily on imports to meet domestic demand.

Official figures show that cotton imports in India increased by 71% over the same period last April.

The situation in China is also similar, and domestic cotton prices have risen 5 cents in a few weeks.

The main problem in China now is that although the cotton reserves continue to run out a lot,

There is still a shortage.

Since May, almost all of the cotton reserves were sold, and the quality of some cotton reserves was not up to standard, which led to a decrease in the number of listed stocks in June.

After the launch of new cotton,

And the tight supply in India will be eased.

Cotton prices are expected to enter the downstream channel in 2016/17.

For cotton prices, a very important question is whether the 1 million 200 thousand tons of cotton output outside China can be successfully digested.

If China continues to be independent of the international market, the surplus stock in other countries will be hard to digest under the current downturn in global consumption growth.