Analysis on the supply and demand situation of cotton in April issued by the Ministry of Agriculture and Rural Affairs
Jul 30, 2019 ｜ by CT
In April 2019, due to the implementation of reserve cotton rotation and quota policy, cotton supply was loose in the short term, yarn prices fell, and cotton prices were difficult to rise. In the short term, the supply pressure in the international market will ease, the downstream consumption power will weaken, the market will pay attention to the trend of Sino-U.S. economic and trade negotiations, and the international cotton price will continue to oscillate. In April, the average monthly price of domestic 3128B grade cotton was 15,660 yuan per ton, up 0.5% month on month and 1.1% year on year. The monthly settlement price of Zhengzhou Cotton Futures Main Contract (CF909) was 15,530 yuan per ton, up 3.2% month on month and 0.9% year-on-year. In April, the average monthly price of the Cotlook A index (equivalent to 3128B cotton in China) was 87.29 cents per pound, up 4.2% month on month and down 5.4% year on year. The International Cotton Advisory Committee (ICAC) predicts that the global cotton output in 2018/19 will be 26.06 million tons, an increase of 20,000 tons over the previous month, consumption will be 26.91 million tons, an increase of 40,000 tons over the previous month, trade will be increased by 270,000 tons to 9.64 million tons, end-of-term inventory will be 17.45 million tons, a decrease of 190,000 tons over the previous month. In 2019/20, the global cotton output was 27.56 million tons and consumption was 27.30 million tons, which were significantly higher than in 2018/19.
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