Many Reasons For The Recent Decline In Cotton Prices Before The End Of The Year, It Is Difficult To Rise Up.

Last week, ICE futures fell sharply and the price trend changed. It was difficult to rise again before the end of the year. The March contract fell 1.8%.

The United States meddle in the Hongkong issue and make the prospects for Sino US negotiations change. Even if the two sides reach an agreement by the end of the year, they may not include the promise of China's massive purchase of US cotton, mainly soybean and other agricultural products.

Sino US trade friction is not the main reason for this decline in prices. China's cotton consumption has been depressed by the decline in retail consumption of clothing, which has had a negative impact on the demand for textile materials. At the same time, China's clothing exports are also decreasing, and cotton consumption is lower than expected.

From the weekly report of the US cotton export, China cancelled the contract signed at the previous high price, and recently shifted its focus to the supply of adequate Brazil cotton. In October, the import of Brazil cotton increased sharply.

In addition, India's MSP mechanism has failed and has so far failed to provide support for India's cotton price. The acquisition of CCI has been pushed again and again, and the rainfall in 10-11 months has greatly increased the moisture content of new cotton. At present, CCI children are waiting for new cotton to dry up and buy more. So India's domestic cotton prices have continued to decline in recent years. The price of Rupee of S-6 has fallen by nearly 2.4% in the past four weeks, and the US dollar price has fallen by 3.7%.

With the fall of cotton prices in India, the competitiveness of India cotton in the export market is much higher than that in the previous months. It may also suppress the demand for us cotton to a certain extent and bring pressure on ICE futures. In addition, cotton imports in Vietnam and Bangladesh continued to slump, reflecting the plight of the yarn industry, and production began to shift to blending.

The recent decline in chemical fiber prices has also put pressure on the cotton market. Clothing consumers in developed countries are trying to reduce the rise in production costs in low-income countries.