Imported cotton prices are rising, and China's cotton prices are expected to rise steadily this year
As for cotton prices at the end of this year, Science Xingnong is still optimistic. This view is not a personal assumption. In the recently released "China Agricultural Industry Development Report" by Mei Xurong, vice president of the Chinese Academy of Agricultural Sciences, it was pointed out that...
As for cotton prices at the end of this year, Science Xingnong is still optimistic. This view is not a personal assumption. In the recently released "China Agricultural Industry Development Report" by Mei Xurong, vice president of the Chinese Academy of Agricultural Sciences, it was pointed out that affected by Sino-US trade, cotton import prices rose by 7.53%.
The rise in imported cotton prices will also directly lead to a reduction in the quantity of cotton China imports. From this it can be inferred that China's cotton prices will reach a good level this year.
As the main source of China's cotton imports, the United States means the Sino-US trade issue has a relatively large impact on China. In 2017, for example, cotton imports from the United States reached as high as 506,000 tons, accounting for 44% of total cotton imports. As agriculture is an important means of countering the United States, in mid-June China's Ministry of Industry and Commerce had already announced a 25% tariff on agricultural products originating in the United States. This will promote an increase in China's cotton prices!
Because China's cotton prices have been stable in recent years, there has not been excessive fluctuation in cotton planting area either. As for China's cotton planting regions, they are currently mainly concentrated in the Xinjiang region, and yields there are slightly higher than in the interior. According to China's "National Planting Industry Structural Adjustment Plan (2016-2020)" report, China's cotton area is stable at 50 million mu! The stability of the total planting area also helps keep cotton prices from fluctuating like garlic, rising for one year and staying low for three.
At present, China's lint prices are basically stable at around 15 yuan, and the only variable factor is exactly how large the impact of the US trade issue will be. This will directly determine the fluctuation range of cotton prices after this autumn.
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