The Future Trend And Challenges Of Cotton Market

At present, the high price of cotton and the slowdown in global economic growth have led to the decline. Cotton market Volatility. This has led the industry to pay more attention to the trend of supply and demand in the cotton market in the coming period and the challenges faced by the global cotton production. Recently, Mr. Jimmy Webb, President of the International Cotton Association (CCI), made her own views on the above issues.

Cotton supply and demand trend has been industry chain Upstream and downstream businesses are concerned. According to the latest prediction by the US Department of agriculture (USDA), the global cotton output in is 26 million 814 thousand tons, with a consumption of 23 million 108 thousand tons and a final inventory of 14 million 676 thousand tons. Among them, 2011/2012 cotton production will reach 3 million 394 thousand tons in the year of 2011/2012, export of 2 million 529 thousand tons, and domestic consumption in the United States will be about 741 thousand tons, and the final inventory will be about 698 thousand tons.

For the future supply and demand in the cotton market, Jimmy Webb said: "cotton prices began to fall from a high level in March 2011 to stabilize, and remain at a higher position than before turbulence. This has a positive impact on cotton farmers' planting intentions, ensuring that there is enough cotton in the supply chain to avoid a repeat of the tight supply situation. He believes that another potential impact on the global cotton market is China's management of cotton reserves.

The Chinese government has bought 3 million 130 thousand tons of cotton reserves to support the cotton prices of its own cotton farmers, which will effectively curb the rise in cotton prices. If cotton prices increase too much, China can stabilize the market by throwing reserves.

except Cotton price Besides, artificial fiber has always been an important factor affecting global cotton production. Jimmy Webb believes that, in any case, cotton will still account for about 40% of the retail market in 2012. Because of the consumer's love for natural fibers, cotton maintains a unique competitive advantage.

CCI's consumer survey shows that natural fibers (such as cotton) are popular among consumers all over the world. "As long as products are on shelves and prices are competitive, consumers in all countries will show their love for cotton fabrics." Jimmy Webb said.

When it comes to the difference between traditional cotton and organic cotton, Jimmy Webb says that traditional or organic refers to the different planting methods, which are independent of quality. The output of the global organic cotton is less than 1% of the total cotton output, and the cotton market is still more than 99% dominated by traditional cotton. The more sustainable agricultural products, the more we need to strike a balance between the three elements of economic growth, environmental protection and social responsibility.

After conversion, in 2012, the consumption of cotton textiles imported from the United States was about 4 million 186 thousand tons. Imported products occupy a large share of the domestic cotton textile consumer market, and a large proportion of the imported products use American cotton.