Cotton Prices Are Difficult To Change, Stop, Consolidate Or Last.

After a long period of decline, cotton prices have finally stopped ceaselessly falling, but the possibility of reversing is not great. No matter whether the domestic cotton futures price or the US cotton futures are currently oscillating in a consolidation area, it is unlikely that they will continue to enter the downward trend in the short term.

The reason why the price is in today's consolidation is closely related to output and inventory. The two have entered a short equilibrium state.

The US Department of agriculture (USDA) report released by the US Department of agriculture (USDA) showed that the annual cotton production in the United States was estimated at 16 million 260 thousand packages in 2014/15.

It was estimated at 16 million 540 thousand bales in September.

Downgrading 2014/15's US cotton production forecast has led to concerns over tight supply in the short term.

It has also become an important reason for the slight rebound in cotton prices recently.

The reduction in short-term forecasts has helped to maintain a continuous decline in cotton prices, which has led to a slight increase in cotton prices.

However, some market participants say that the rise in cotton prices is difficult to sustain because the pressure on global inventories still exists, and the short-term benefits can only cause fluctuations in cotton prices within a certain range.

The Cotton Advisory Committee (ICAC) recently said that the global cotton prices in will continue to be under pressure. Although the year-end inventory forecast for cotton in a record 2014/15 year has been cut down, it will not solve the problem.

ICAC reduced the global cotton year-end inventory in 2014/15 to 21 million 470 thousand tons from 22 million 250 thousand tonnes in September, but still a record high.

2014/15 is expected to have an oversupply of global cotton market for third consecutive years.

ICAC said in its monthly report: "there is an oversupply of 1 million 800 thousand tons of material in the global cotton market, and China's cotton support policy has changed, and cotton prices are unlikely to rise to the level reached in the first two years."

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The cotton price will not be optimistic in the future. Although the cotton price rebounded slightly under the influence of shortage, it is difficult to constitute an upward trend.

Therefore, under the short-term impact of the output and the long-term impact of inventory, the price of cotton will not be greatly reduced, and the rise will be very difficult.