Behind The Frenzied Cotton: Cotton Prices In The US Are Not Increasing.

"This round Price Skyrocketing U.S.A Cotton farmers are the biggest beneficiaries. Dong Shuangwei thinks. Dong Shuangwei, the first manager of futures research and development center, has been focusing on cotton futures research for many years.

In 2010, the US cotton planting area increased by 20%, the output increased by nearly 50%, and the price reached the highest level in 15 years. In January 9, 2009, cotton contracts in ICE3 months were 49.32 cents a pound and 49.85 cents per pound in May cotton contracts. In September 29, 2010, ICE12 cotton rose 1.0124 per pound, up 104%.

Meanwhile, American cotton growers enjoy the high subsidies provided by the US government. subsidy The rate is as high as 89%, that is, $100 for cotton and $89 for each cotton patch.

China's cotton growers have only 15 yuan seed subsidy per mu. At the same time, because of the increase in cotton production costs and the decline in output and quality, cotton farmers have not received any increase despite the soaring cotton prices.

American cotton growers are the big winners.

"The amount of US cotton signed in advance is very large, and more than half of them have been sold out." Dong Shuangwei said that in 2010, the cotton planting area in the United States increased by 20%, the output increased by nearly 50%, and the price reached the highest level in 15 years.

China, the United States, India and Pakistan are the four largest cotton producers in the world.

The United States is the largest exporter, while China is the largest importer and the largest customer in the United States. According to the data released by the US Department of agriculture in August 12th, China's cotton import demand has increased by 24% since 1993.

In 2005, the world exported 8 million 80 thousand tons of cotton, and the United States accounted for 2 million 830 thousand tons, accounting for 35% of the world's cotton exports. The International Cotton Advisory Committee (ICAC) predicts that in the year 2010, the world's cotton exports will be 8 million 460 thousand tons, and the United States will account for 3 million 220 thousand tons, reaching 39%.

2009 China has imported 2 million 505 thousand tons in the whole year, an increase of 73% over the same period last year. Among them, 851 thousand and 200 tons were imported from the United States, accounting for 33.98%, 797 thousand and 700 tons of cotton imported from India accounted for 31.84%, 246 thousand and 700 Uzbekistan cotton, accounting for 9.85%, and 198 thousand and 700 tons of Australian cotton, accounting for 7.93%.

In the first 8 months of 2010, China imported 1 million 950 thousand tons of cotton, an increase of 1 times compared with the same period last year. But in recent years, it has accounted for six or seven of total cotton imports, and the United States and India cotton have a gap.

The restrictive policy of India's cotton exports in 2010 made the international market especially the supply and demand of China tight.

To ensure the supply of raw materials for the domestic cotton textile industry, the India authorities have adopted export licensing restrictions on cotton since May 21, 2010. However, the move was strongly opposed by importers from Pakistan and Bangladesh. They asked India cotton growers to carry out the signed cotton export contract, otherwise they would ask for payment of liquidated damages for the contract. It is reported that Bangladesh is a major textile power country in South Asia. Annual textile exports account for about 80% of total exports. As the fourth largest cotton producer in Pakistan, cotton production has been reduced by nearly 380 thousand tons due to floods. From 2010 to 2011, at least 680 thousand tons of cotton will be imported.

Cotton gap in China was only 2 million tons in previous years. This year is expected to have a shortfall of 3 million tons. Dong Shuangwei said, China's dependence on imported cotton, the United States cotton traders are staring at it, the possibility of US cotton reduction is very small.