Weakening Demand In China Has Led To A Decline In Cotton Prices In India

China is the largest importer of cotton in India. Order At the same time, the supply of cotton in India is bound to reach its peak. India buyers are still waiting for wait-and-see because of weak demand for yarn. Therefore, in the next two months, cotton prices in India may drop sharply.

Cotton supply in India will reach its peak in early December; the recession in Europe and the United States will hit China's textile exports; cotton prices in India will probably drop by 14% to 32000 rupees /candy.

The price of cotton in India is now 37200 rupees (US $710) / candy (356 kg) or 104000 rupees (US $2000) / ton, and the price will fall by 14-15% to 32000 rupees / candy by December, and then maintain at this level.

Since the record high of 61700 rupees / candy in March, cotton has so far been so high. Price It has fallen by nearly 40%.

China buys more than half of India's cotton exports, the largest in the world. cotton Importing countries, China has imported nearly 1 million tons of cotton from abroad in recent months, replenish national reserves, much higher than market expectations.

However, India failed to get a share in the panic buying trend, because the time of India cotton entering the market was postponed. Now China has acquired domestic cotton from September 2011, so India has less chance.

Insiders pointed out that if China still takes a wait-and-see attitude towards the market, then (India) domestic prices will come down.

India will harvest 35 million 600 thousand bales of cotton this year, a record high.

India cotton will enter the peak in the first week of December to the middle of January, then slowly reduce.

In September and October, India's unusual rainfall, the cotton picking progress slowed down, resulting in the arrival time of cotton market in India was postponed.

As of November 20th, about 3 million 500 thousand packages (170 kilograms) of cotton entered the spot market in India, representing a decrease of about 25% compared with the same period last year.

The arrival time of cotton in India has been postponed, giving Brazil and Australia the opportunity to open the door to China.

This year, China overtook South Korea and Indonesia to become the biggest buyers of cotton in Brazil. It imported 104000 tons from January to September, double the same period last year. This month, China also bought about 996100 bales of cotton, becoming the largest buyer of cotton in the United States in 8 years.