The Global Economic Crisis Has A Direct Impact On The Rise Or Fall Of Cotton Prices.

With the uncertainty of the health of the global economic situation and the enlargement and expansion of the eurozone crisis, the prices of most daily necessities have declined sharply. cotton No exception. Now that the global economy is shrouded in the debt crisis of the US and Europe, the recession of the economic situation will have a greater impact on the world's consumer market. The deterioration of the global economy has led to changes in consumption expectations, consumer confidence is obviously insufficient, and textile enterprises' orders are also decreasing. Frequent increases in interest rates are unprecedented. After raising interest rates and raising the standard, the SME loans will be more difficult and the financing costs will rise, which will inhibit the development of enterprises. The interest rate increase will not only affect the production of textile enterprises, but also affect the consumption field. This has been well reflected in the operating rate of textile enterprises. According to the survey, 80% of cotton spinning enterprises in China have limited production and stop production. The operating rate is between 60% and 70%, which is obviously low. Economic depression and tight fiscal policy are also indirect compression in the impact of textile production and social needs. Spin The demand for cotton by enterprises.

On Wednesday, raw cotton futures on the New York Mercantile Exchange fell to the zero or one largest quarter in two years, due to heightened concerns about the euro zone debt crisis.

The key cotton futures contract for July 2012 dropped 3.01 cents / pound to 71.51 cents / pound on Wednesday. The futures price of new crops (2012-2013) fell by 2.82 cents / pound in December, closing at 68.75 cents / pound.

　　 Pakistan Local higher lint prices dropped 300 rupees / Meng De (1 Meng =37.32 kg) this week, and the current mainstream price is 5700 rupees / Mende.

On Thursday, the price of the new lint varies depending on the quality of 4700-5700 rupees / mender, and the cotton prices in Punjab vary according to the quality of 5000-5700 rupees / Mende.

According to a report, the price of new cotton (2012-2013) in SED's 2012 July in Sindh province was 5000 rupees / Mende, but the news was not confirmed.

This week, the Karachi Cotton Association (KCA) lowered the factory price of the cotton mill by 200 rupees / mender, and fixed the price of grade three cotton to 5700 rupees / Mende.

Act as Cotton price As a result of weakening, yarn prices also drop, and cotton mills are reluctant to purchase cotton.

The news of the extreme bear market in the euro area has had an adverse effect on yarn and other textile businesses.

The spot price of better grade cotton has dropped from 14000 rupees / Mende to the current 5700 rupees / Mende in the first week of March 2011.

In the next few years, the price of seed cotton is down again. At that time, new cotton in different regions will be on the market to increase carry over stocks, including China and India.