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Cotton yarn has limited room for further declines1
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Since mid-February, due to high raw materials inventory, and lower transmission costs caused by poor adjustment, making the infinite beauty of cotton yarn have been close to 35,000 from around the towering peak of a fall, May 12 is dropped to 24 130 points, below November 29 of last year's low of 24180, before the author confirms the expected decrease for cotton. Present a weaker spot market, China's cotton day a 328 index fell. Weiqiao purchase price is also close appeared in April, 5,000 diving, so that the spot market panic intensified. And with the decline in value of cotton lint, yarn prices are way down, 32 yarn price index from about 39,000 in February fell to 34,000 or so, a serious slow-moving yarn. Although the busy season, but in the panic, but also pregnant with hope.
From May the new year the U.S. Department of Agriculture report on supply and demand, global production was significantly raised, but by the steady increase in consumption, the overall level of ending stocks showed a slight upward trend, which is based on global production this year to enhance the 2.1 million under the premise. And ending stocks of about 40% more than consumption, though improved over the previous year, but below average. If you encounter the next severe weather, the output data may be reduced. Can be said that in July the U.S. cotton prices around 150 cents, 120 cents in December about the price, basically reflects the current Ministry of Agriculture has reported factors. Domestic, according to data reported by the U.S.
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