Vietnam'S Cotton Grew By 6.7%&Nbsp Compared With The Same Period Last Year, A Record High In The Past.

According to the latest forecast by the US Department of agriculture, Vietnam's cotton imports will reach 370 thousand tons this year.

According to this goal, Vietnam needs to import at least 30 thousand tons of cotton per month for the rest of the year.

Up to now, Vietnam's cotton in the first three months of this year

However, due to soaring global cotton prices, Vietnam's cotton import cost climbed to a record high of 92.1 cents / pound in October, and Vietnamese textile mills also had to accept high prices.

If consumers do not want to pay the bill, it will affect the bright prospects of Vietnam's cotton import and clothing export this year.

Supplement:

According to the insiders, cotton prices will be supported in the context of lax policy and weak dollar.

And 2010/2011 cotton reduction in the United States will be a big probability event. Cotton supply and demand in the future will also be good for cotton prices.

Futures daily news in November 5th, since this year, international agricultural products have been rising, among which cotton is in the first place, while China's cotton foreign dependence is around 1/3, and international cotton prices boost domestic cotton prices, which makes it difficult to get rid of the impact of the global price of agricultural products.

Whether from the perspective of global cotton investment demand, industrial and jewelry demand or rising global money supply, cotton is in a long-term bull market channel. It is important to note that the current US economy is likely to decline further and trigger deflation, thus triggering a cotton stage pullback.

Risk aversion triggered by global economic uncertainty will support demand for commodities including cotton.

In the US, the Obama stimulus policy may have some support for the economy, but it has not changed the slowdown of the real economy in the United States; the European debt crisis has not yet been completely resolved.

Meanwhile, Germany's economic growth began to decline in the three quarter, and the euro zone economy remained weak.

The outlook for the global economy remains uncertain. Investors' risk aversion needs to boost cotton prices to new heights.

Loose policy and weak dollar will also push cotton prices up.

In the short term, there is no inflationary pressure on the US, and the Fed has more room to keep interest rates low.

In addition, the launch of the two quantitative easing in November 3rd is also expected to keep the US dollar vulnerable.

Other governments, except the US, are likely to maintain a loose monetary policy in the fourth quarter.

Therefore, in the context of the continuation of the policy of easing and the weakness of the US dollar, cotton prices will be supported in the future.