U.S. domestic consumption continued to decline

This week another new low price of cotton contracts, in addition, if the prices will not fall next week, then next week they will continue to hit record lows. December contract first notice day after the March contract to become the lead contract with the December contract, the March contract has fallen below 40 cents. The next goal is 35 cents. Cotton market, mainly by the overall economic situation, demand also reflects the extremely weak, the market will continue to deteriorate.

As of November 13, 2008, export sales performance was better than last week, but progress is still less than the U.S. Department of Agriculture projected 2008/09 exports 13,000,000 required for the progress of the package. However, the annual sales but only through more than 3 months, therefore, still plenty of time. However, I think, the number of exports to the United States will not be more than 12,500,000 packets. Week report net sales of 221,100 packets, of which 220,400 packages upland cotton, Pima 700 package. Upland cotton are the main buyer China (39,700 packets), Turkey and Mexico. Pima cotton are the major buyers in Japan (300 package), and Thailand. Cotton exports of 240,900 bags, of which 239,000 packages upland cotton, pima cotton package in 1900. Upland cotton are the main destinations of China (87,200 packets), Turkey and Mexico. Pima cotton is the main destination of Germany (900 package) and Indonesia.

U.S. domestic consumption continued to decline. Thursday, the U.S. Cotton Council (NCC) of the textile mill consumption survey, in November the country’s annual domestic consumption is only 4,000,000 packets. The U.S. Department of Agriculture will release next week of its initial forecast, but in history, NCC survey of the textile mill is considered a good official forecast data. 2008 years – on – on the average consumption of cotton than last year, a reduction of about 400,000 packets.

Cotton is still the main market by the stock market, but also by the grain and soybean markets. Global consumers no longer buy durable goods, such as car washing machine / dryer, TV, etc., but also no longer purchase a number of non-durable goods such as toys, textiles and phone, the stock market will remain day-to-day topics. This, in turn, will lead to more consumer-on-hand, they worry about whether there is sufficient money to meet basic needs. In addition, it is clear that many consumers still worry whether they can continue to work. Of course, the car is a major textile power consumption. Due to financial difficulties, the auto industry to reduce its cotton and other textile products.

As we have mentioned in the last few weeks, is a global economic crisis, China’s textile industry affected more than any other country,
2008/09 marketing year, China’s cotton consumption could be reduced by 500 million bales. In addition, China is a major buyer of U.S. cotton,
As a result, U.S. cotton exports are likely to be lower than the United States Department of Agriculture estimated the level of 13,000,000 package. China is facing a large number of bankrupt textile mill, a lot of
Textile mills will not be able to survive. The remainder of 2008, the cotton market will continue to bear the pressure on.