Decline in cotton prices has slowed down and sales volumes have been low

The decline in domestic cotton spot prices has slowed down. The National Development and Reform Commission issued the 2012 annual plan for the temporary purchase and storage of cotton, and the market has various reactions. Textile companies are cautious about this, lint purchase can meet the short-term production can be, currently troubled textile companies or sales of gauze products deserted; cotton business acquisitions run smoothly, cotton sales turnover is not; farmers cotton confidence has improved, but there are also industry Respondents have reported that the cost of cotton-planting has continued to rise significantly in recent years. In particular, labor costs have been increasing rapidly. The policy for collecting and storing more is to ensure the stability of cotton-planting areas, but it is difficult to significantly stimulate farmers' enthusiasm for cotton-planting.

The price of imported cotton in the main port of China continued to decline, and the decline was generally around 0.75 cents. From the perspective of market conditions, the continuous weakening of outer cotton led to a further expansion of the cotton price gap both inside and outside the country. The textile mills were more active in asking for high-grade cotton, but the transaction volume was small. At present, it is difficult for the market to have enough good news to support a substantial rebound in cotton prices. Although the new round of storage and storage prices has increased, it has limited impact on the market for the current year. Analysts said that unless there is a significant improvement in downstream consumption, foreign cotton will remain weak.