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The Government Of India Banned Cotton Exports To &Nbsp, And International Cotton Prices Rose Straight-Line.

2012/3/6 17:15:00 11

The Ministry of Commerce and industry of India (DGFT) issued a statement yesterday morning saying that the export of cotton was banned immediately from the date of the announcement, until the government issued further instructions.

The news immediately caused a strong reaction in the international cotton market.

According to the statement issued by the government of India on March 5th, the cotton tax No. 5201 and 5203 will be banned from export immediately. The date of the release will be stipulated separately. The export period of cotton will no longer be arranged. The cotton exported to the government is also prohibited.

As the second largest exporter of cotton in the world, the news of India's ban on cotton exports immediately caused a strong reaction in the global cotton market.

New York

cotton

Take the lead.

New York cotton futures began to pull up at 11:30 yesterday in Beijing time, and rushed up to $91.52.

As of 14:30, New York cotton May contract reported 92.17 U.S. dollars / pound, or 4.12%; domestic cotton futures in Zhengzhou opened lower in early trading, Zheng cotton September contract early reported 21655 yuan / ton, or 0.48%.

News spread to the country, Zheng cotton immediately opened in the afternoon straight up, the highest rushed to 22110 yuan, late reported 22040 yuan, or 1.29%.

At the same time, the contract substantially increased positions, as at the end of the 40072 additional positions, a record high this year.

Data show that India has exported 8 million 500 thousand bales (170 kilograms per pack) of cotton due to strong demand in China, which is higher than the 8 million 400 thousand package estimated by the India government in January this year.

More than 80% of India's cotton exports to China.

Traders in India have signed 10 million packages.

cotton

The price of the export contract is between us $1.01 and US $1.03 per pound.

Domestic traders in India say the country's textile companies are worried that such a huge export of cotton may lead to a shortage in its domestic market.

This year, the price of India cotton sold in China is between 18000 yuan and 18500 yuan per ton, far below the domestic price of 19800 yuan, which is lower than the price of imported cotton and is the key factor to suppress the spot price of domestic cotton.

This time India stopped cotton exports, directly stimulating the price of the United States cotton, and thus promoting the promotion of China's cotton price.

According to the US Department of agriculture's report on cotton supply and demand in February, total cotton output increased to 26 million 855 thousand tons in 2011/2012 and consumption decreased to 23 million 887 thousand tons.

The end of the global inventory increased to 13 million 237 thousand tons, higher than the previous forecast data, the inventory consumption ratio of 55.39%.

For the ban issued by the India government, India

cotton

Dhiren Sheth, the president of the association, said that the government's ban on cotton exports would permanently damage India's credibility in the international cotton market.

Cotton prices may soon hit supporting prices.

Since the record high of 61700 rupees in March 2011, domestic cotton prices in India have dropped sharply, and are currently hovering between 34000 Krupp -35000 rupees per HKG (356 kg).

In January this year, the India Cotton Advisory Committee lowered its cotton production from 35 million 600 thousand bales to 34 million 500 thousand bales in 2011/2012.

Domestic traders in India say the government may also lower domestic output.