Brazil Cotton Prices Rose Slightly, Buyers Concerned About West Africa Cotton

According to the latest report of the Australian Bureau of agricultural resources and Economic Research (ABARE), Australia's cotton growing area in 2016/17 increased by more than expected. The total output of cotton is expected to reach 1 million 30 thousand tons, an increase of 150 thousand tons over the previous forecast, a record high of second, an increase of 64% over the same period last year.

ABARE's latest forecasts outnumber all other agencies including the US Department of agriculture.

In November, the US Department of agriculture estimated that Australia's cotton production in 2016/17 was 871 thousand tons, Caunt Luke estimated that it was 925 thousand tons, and the International Cotton Advisory Committee estimated that it was 876 thousand tons.

According to the report, the Australian sorghum area has decreased by 31% this year as a result of the increase in cotton income, which has reached a new low of nearly 471 thousand years in the past 471 thousand years. The output is expected to drop to 1 million 440 thousand tons, or 29%.

According to the latest report, due to adequate rainfall and high expected yield of cotton farmers, the

The area of cotton planting increased by 45 thousand hectares to 520 thousand hectares, almost doubled compared with the same period last year, especially the area of non irrigated farmland increased significantly.

The forecast shows that the area of Dryland in Australia is expected to double to 150 thousand hectares this year, and the storage capacity of irrigated field reservoirs has reached 75%, compared with 31% in the same period last year.

According to the report of Brazil's domestic research institutes, cotton prices in Brazil rose slightly in the first half of November, stabilizing in the middle of the month and resuming upward trend in the second half of the month.

Before the cotton price re strengthened in late November, the poor quality of cotton in the spot market caused the psychological gap between buyers and sellers to be too high, and cotton prices showed a steady trend.

However, as cotton prices rose again at the end of the month due to a decrease in the supply of high-grade cotton, trading companies and cotton growers were all doing their best, and they were always paying attention to the international market and the US dollar quotations.

11 in the second half of the month, Brazil

No intention to continue purchasing new cotton, but accelerated the shipment in 2017, and the spot market gradually became active.

According to statistics from Brazil, as of the end of November, cotton sales in Brazil in 2015/16 had been 67.9%, of which 49.2% were sold in the domestic market and 50.8% exported.

According to Brazil's forecast, cotton production in Brazil is expected to be 1 million 400 thousand tons in 2016/17, and 23.1% has been sold ahead of schedule, of which 24.5% is sold at home and 75.5% exported.

I. futures

7 ICE cotton continued to adjust the trend, the contract price fell slightly.

1612 contract settlement price 72.11 cents / pound, down 28 points; main 1703 contract settlement price 71.05 cents / pound, down 28 points; 1705 contract settlement price 71.42 cents / pound, down 34 points.

The 7 day after the opening of the main contract, the trend was steady. In the middle of the day, the sale was lower and remained low in the remaining time.

The market is concerned about the forecast report issued by USDA on Friday, and is expected to increase the initial and final stocks in India to 11 million 730 thousand and 12 million 830 thousand packs respectively.

Two, spot

On the 7 day, the CotlookA index was 79.80 cents / pound, up 25 points.

On the 7 day, the imported cotton price index FCS reported 83.87 cents / pound, up 27 points; FCM reported 80.53 cents / pound, up 19 points; FCL reported 79 cents / pound, up 23 points.

The 7 day spot performance is almost the same as that of the previous day. Buyers are mainly concerned about the recent shipment of West African cotton.

Textile enterprises in Pakistan and Bangladesh are in urgent need of replenishment.

Other part

Brazil cotton is also contracted for shipment in the 3 quarter of next year.

Three. Dynamics of countries

On the 7 day, the India S-6 ginning factory picked up a price of 39000 rupees / candi (73.30 cents / pound), Punjab J-34 4130 rupees / mod (73.95 cents / pound), and currently 26 thousand and 400 tons of cotton covered cotton lint in the local market, of which Maharashtra accounted for 1/3.

Recently, Pakistan has made more positive inquiry about "non India" cotton.

It is understood that local buyers in Pakistan have signed a number of West African cotton, 1-3/32, the price overflow ICE cotton main contract 800-825 points.

In addition, the price of Sultan Acala cotton to Karachi port is about 70 cents / pound, and the fine yarn spinning enterprises supplement Turkmenistan long staple cotton.

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