China Cotton Association: policy support at the end of the overall stability of the domestic cotton market

At present, new cotton has been gradually purchased and the temporary purchase and storage policy has been initiated. All parties are very concerned about the market situation in the new year. On September 15th, the China Cotton Association held a national cotton situation analysis meeting in Beijing to analyze and predict the 2011 cotton and textile situation.

In 2011, attracted by the high cotton prices and high yields of the previous year, the enthusiasm of cotton farmers increased and the area of ​​cotton planted in the country increased. According to monitoring by the China Cotton Association, the country's cotton planting area was 80.18 million mu in 2011, an increase of 4.1% over the previous year. It is expected that the country's cotton production will be 7.38 million tons, an increase of 11% over the same period of last year.

However, as an end customer of cotton, the problems faced by the textile industry in 2011 are still very complicated. The reasons for this are analyzed. Gao Fang, director of the cotton and linen bureau of the National Supply and Marketing Cooperative and the executive vice chairman of the China Cotton Association, believes that the main reason is that monetary tightening has Financing difficulties. *** Exchange rates continue to appreciate, and there are uncertainties in exports; labor, raw materials, energy, and other materials have risen in price, and costs have risen too quickly, making it difficult for companies to digest. Therefore, the growth rate of the textile industry in the new year may continue to slow down, and cotton demand is expected to remain at the level of the previous year.

From an international point of view, most of the major cotton-producing countries in 2011 will have a bumper harvest of cotton, and their output will increase substantially, while demand will not change much. Supply will be slightly greater than demand, and cotton prices will have some downward pressure.

On September 8, the state officially launched a temporary storage plan. If the market price falls below 19,800 yuan/ton, it will open up storage and storage. The China Cotton Association calculated the seed cotton acquisition reference price based on the purchase and storage price and related parameters. Cotton farmers sold the cotton accordingly, and the storage enterprise must not purchase less than the seed cotton reference price. If the market price is higher than 19,800 yuan / ton, then follow the market. There is a policy of purchasing and reserving reserves, and it is expected that the overall domestic cotton market will remain stable in 2011.