The long bear market of cotton seed cotton prices continued to fall

Zhengzhou cotton CF901 into the main contract in November for a few days since the crash, or up to 17%, almost million mark. Tracing to its source, resulting in the cotton price fell short because of the global financial crisis, consumers cut back on clothing expenses, such as textiles, thereby suppressing the demand for cotton; at the same time as a result of domestic demand to accelerate the decline in the textile advance Integration of related industries.

In order for crude oil on behalf of the commodity bull market the long end of the current bear market is long. In the past, oil prices have led other commodities higher, some even reaching record highs, countries have attracted out-control policies to prevent inflation. Today, from a record high international crude oil prices all the way down, breaking the minimum 60 U.S. dollars, cut more than half of the waist. Cotton can not be an exception, NYBOT’s cotton prices in December from early March this year, fell 98 cents to 40 cents below.

According to the U.S. Department of Agriculture released in November of supply and demand report, China 2008/2009 annual cotton production is estimated 36,500,000 package, and in October of the same estimates. U.S. cotton year 2008/2009 forecast for the area of 9,410,000 acres, the export forecast for 13,000,000 package, with the same last month. Cotton production forecast for 13,530,000 package, in October estimated 13,710,000 for the package. As of October 30 the week, the U.S. cotton year 2008/2009 net sales of 241,500 packets. The U.S. Department of Agriculture released in November of supply and demand report little effect on the market. Although the report showed that the indicator data change, but this factor has been reflected in the price.

As the global financial turmoil, world economic growth has obviously slowed down. 11 issued by the World Bank forecast that the 2009 global economic growth rate will remain at only 1% higher than forecast in June dropped to 3%. International economic environment, increased instability, leading to speed up the deterioration of the real economy, affecting China’s garment export industry. According to Chinese customs statistics, in 2008 our 1-9 month cumulative exports of textiles and garments 136,940,000,000 U.S. dollars, up 8.1 percent, an increase of the same period last year dropped 11.9 percent. Among them, exports to the United States 19,240,000,000 U.S. dollars, up 1.4 percent, an increase of the same period last year fell by 28 percentage points. The current economic slowdown has made many domestic textile enterprises Neiwaijiaokun not only a large number of small and medium enterprises closed down or close down the situation, and a number of large enterprises are also faced with falling profits, losses increased funding chain tension and many other issues. Textile and garment industry should adjust its thinking and raise value-added products, in the face of this positive impact.

Seed cotton prices continued to fall so that farmers know what to do. On the one hand, the cost of cotton at a high level, on the other hand, seed cotton prices have fallen sharply, so that farmers have to bear a double pressure, Zhong Mian initiative to combat by many cotton farmers switch next year the intention clear. A variety of factors, the new cotton price down to the bottom line with national policy control of the cotton production costs and the bottom line, there is no introduction of the policy, the market itself has no control over the price of cotton. In order to protect the national interests of cotton growers, cotton market stability, in the Oct. 29 release in the second round of the 1,000,000 tons of cotton Shouchu notice, and that will be a certain number of Shouchu the Mainland largest cotton bag. Shouchu not only the tremendous amount of Shouchu, and 12,600 yuan of Shouchu prices remain high, the market has been higher than many. Shouchu two from the increase in the number of intervals, as well as we can see that the country continues to control the stability of the city’s determination to cotton. However, the market has entered a state of irrational, crazy prices down, spinning rate of the purchase price to the significant downturn in the business seems to be a test of the tolerance.

In addition, China’s accession to the WTO Working Group report, paragraph 242, as well as measures to limit the special textile China and the United States, the China-EU textile memorandum expires, WTO members will no longer be able to invoke section 242 of the implementation of restrictions on textiles and I, the Ministry of Commerce since 2009 In effect Jan. 1 will no longer be the implementation of US-bound textile exports and the number of permits and textile exports to the EU export license management. Or it can stimulate the growth of the cotton market in the future, but how the need to wait further.

The financial crisis affecting the global economy, now part of the country’s real economy has been a greater impact. If further deterioration of the international economic environment, high dependence on the outside of the Chinese textile industry on how to survive will be a big problem. Textile enterprises will be very difficult cotton limit consumer demand, the price of cotton will produce long-term suppression. However, cotton prices fell over, in order to avoid injury cheap cotton farmers, the state is likely to introduce policies to stabilize the cotton market.