Xinjiang Cotton Sanctions Bring Benefits To Indian Cotton Supply And Demand Balance

2022/3/4 14:41:00 0

It is reported that the United States and Iran are expected to reach a nuclear agreement soon, increasing crude oil supply for the tense global market, and international oil prices fell 2% on Thursday. At the same time, under the effect of interest rate increase expectation, the dollar index is stronger, which limits the rise of cotton price to a certain extent.

With the continuous recovery of India's epidemic situation and the influence of Xinjiang cotton sanctions and other factors, some orders have been transferred to Southeast Asian textile countries again. At present, India's downstream demand is strong, and the production orders of textile enterprises have been arranged to September, and the demand for cotton has increased significantly.

In the previous two years, India continued to export low-priced cotton, which made India's domestic cotton inventory drop to a historical low. At present, the strong demand makes India's domestic cotton have a gap of at least 500000 tons.

The Textile Association of South India has proposed to the government to consider the duty-free import of 680000 tons of cotton. Recently, due to the tight balance between supply and demand of cotton in India as a whole, it has become the main driving force to help the international cotton price rise to a certain extent.

The current international cotton price trend and the development trend of external macro environment are important factors affecting the trend of cotton price. The tight balance of global cotton supply and demand and Russia Ukraine tension may form a certain bottom support for cotton.