Cotton Prices Soar, Clothing Industry Damaged

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The so-called global cotton supply and demand change is the key reason for the soaring cotton price: due to weather factors, cotton picking has been delayed for about 2 weeks, and the quality has dropped. India has suspended cotton exports and Pakistan cotton has been affected in the past few years. These factors lead to the market's view that the global supply and demand of cotton will be reduced to the direction of inventory reduction in the coming year, and the price will rise. However, the market seems to ignore the positive factors that increase the planting area of the United States by 19%. Moreover, China's cotton has not been fully picked yet, and the output is still very uncertain. At present, the so-called global cotton supply and demand change is somewhat similar to that of the crude oil price from 100 US dollars to 147 dollars per barrel.

We believe that capital is the key reason for the recent surge. Domestic cotton has always been skyrocketing and plunging. The key reason is that the processing industry, circulation sector and cotton textile enterprises are always looking forward to low price cotton and profit making, resulting in sharp changes in the inventory of enterprises and society, resulting in a sharp rise and fall in cotton prices.

The latest skyrocketing crash occurred in 03 -04, and cotton prices rose from 12000 to 18000 yuan in half a year and fell to 10000 yuan in half a year.

One of the results is that the central storage cotton company has just been established, that is, the loss is one billion yuan.

This year, not only has the funds still been involved in cotton speculation in the past year, but also new funds have been taken part in, and the most obvious indication is that it ignores the national policies. The funds can be completely stockpiling in the spot market and gain huge profits in two cotton futures markets in China and the United States.

Under the so-called market expectations and capital participation, the soaring cotton prices become inevitable.

This year's demand for cotton textile products at home and abroad is relatively strong. This is the main reason for pushing up cotton prices: in 1-8, textile and garment exports increased by 125 billion 200 million, up 23.8% from the same period last year; in 1-7 months, the total volume of domestic textile and garment wholesale and retail sales increased by 23.8%, and the growth rate basically reached the level before the crisis.

The rapid recovery of demand is also the main reason for the rise in cotton prices.

The rising prices of global agricultural products are raising the price of cotton prices. This year, the prices of global agricultural products continue to rise, of which cotton is in the lead, while China's external dependence on cotton is around 1/3. The international cotton price boosts domestic cotton prices, making it difficult for cotton prices to get rid of the impact of global agricultural prices.

The price of cotton has risen sharply, but there is no harm in it: because new cotton has not yet been listed in large quantities, and cotton prices have skyrocketed. Even if cotton prices are running high in the future, cotton spinning enterprises will not be able to store large quantities of cotton at low prices as at the end of this year and early this year, so that they will get higher profits in the early stage of operation this year.

Cotton prices will rise rapidly, and will soon be pmitted to downstream clothing, which will be a global consumer's pay. Clothing prices will continue to rise, and the entire textile and garment industry will be damaged when the global economy has not yet recovered. If cotton prices fall, it will not be possible to reproduce the 04 year's tragedy. Before the cotton price stabilizes, the efficiency of cotton spinning enterprises will still decline. If cotton prices are flat, the possibility is too small, because it is never seen in cotton history, and the country and enterprises have always dreamed of it.