India Cotton Is Not Cheap, But What Is It?

Recently, the cotton market in India can be described as "high wind and high wind". The main contract of ICE has risen from 69.32 cents / pound to 75.37 cents / pound, and India cotton should rise. The direct result is not only that Chinese, Vietnam, Pakistan, and other buyers are "far from home" for India cotton, and even the domestic textile enterprises in India are also asking for a lot of quotations, signing 2016/17 cotton, West Africa and even a small amount of Central Asian cotton in the year of ICE, with the quotations of India cotton S-6 and MCU5 (31mm) to break through 81.75 cents / pound, 84.25 cents / pounds.

The signs of "lifting a rock to hit one's own feet" are becoming more and more obvious. Not only the domestic cotton consumption in India is expected to decline significantly (according to the latest monthly report of USDA, the cotton volume in India is reduced by 109 thousand tons to 5 million 62 thousand tons in 2106/17), and the export volume of cotton in India and the increase of 44 thousand tons and 65 thousand tons in India's cotton stock are, respectively. Therefore, Xiaobian judges that the export pressure of India cotton will be bigger and bigger, which is in sharp contrast with the signing of the export contract of 2016/17 cotton.

What causes the India cotton to "go all alone"? First of all, CCI announced the temporary purchase and storage of the market, but it did not set the minimum purchase price according to the usual practice, instead, it adopted the market price.

Although the current CCI storage volume is very limited, it does not solve the actual sales problem of India cotton, but gives the confidence and opportunity of the crazy speculation of the cotton merchants and the market traders; secondly, the new monetary policy of India has been slow and side-effects, and the progress of the seed cotton and cotton market has fallen sharply, with the rebound and reversal of cotton prices by the cotton enterprises and exporters, the third is that the continuous depreciation of the India rupee to the US dollar has led to the "continuous" rise in the India cotton quote based on the dollar based valuation.

First,

Competitiveness is much lower than US cotton and West African cotton.

From 12 to 13 January, the quotation of foreign traders and traders showed that the shipping date of 2/3 month was the same as that of MOT GC21-2-37+, which was 1 cents / pound higher than that of GC21/31-2/3-37, while the difference between S-6 1-5/32 and EMOT SM 1-5/32 was narrowed to MCU5 cents / pound; the price of the SM was much higher than that of Burkina Faso, Mali and Uganda.

Taking into account the characteristics of India cotton, such as roller cotton, large impurities, "three silk" high, length and fracture and other indicators, low consistency and so on, the interest of buyers in the international market for India cotton is greatly reduced. There is a lack of support for actual pactions and exports. Where does the bottom of India cotton price rise come from?

Two, in the first half of 2017, global cotton fundamentals were more favorable than profits.

In 2016, the income of cotton growing in the northern and southern hemisphere was significantly better than that in grain and other competitive crops. With the increase of yield per unit area and planting subsidy, the planting area of the United States, Australia, Uzbekistan, Africa and other countries will have more obvious rebound in 2017. Cotton planting in China, India and Pakistan will also rise to the bottom. In the year of 2017/18, global cotton supply or substantial increase and final inventory will increase rapidly.

Pakistan continues to ban import licenses for India cotton, and Bangladesh and other countries try to import.

Instead of India cotton and so on, it is not good news for India cotton related enterprises.

Three, the export of India's cotton yarn is hard to speak smoothly, and the cotton mills in Vietnam, Pakistan and Uzbekistan continue to seize the share of India's yarn in the global market.

According to investigation, according to the investigation, the price of cotton yarn in India increased by 6-8 cents / pound for more than a month. The price of FOB, CNF and CIF of the printed yarn in 2/3 months has risen comprehensively. The price of the C32S knitting brand yarn has exceeded 2.75 US dollars / kg. The price of C10S-C40S cotton yarn, JC21 and JC32S yarn has been even or even higher than that of Vietnamese yarn, 0.02-0.03 dollars / kg, plus the low grade of cotton blending, insufficient yarn strength and high CV value.

According to customs statistics, in November 2016, China imported about 178 thousand and 800 tons of cotton yarn, an increase of 12.13% over the same period last year, an increase of 27.06% over the month, including 39.8% of Vietnam yarn imports and 12.7% and 2.5% of cotton yarn imports from India and Pakistan.

For more information, please pay attention to the world clothing shoes and hats net report.