Louis Da Fu CEO: If Sino US Negotiations Succeed, Cotton Price Will Rise To 95 Cents.

Louis CEO Jo Nicosia, at a recent meeting of the US cotton industry conference, said that the most talked about Sino US negotiations were the situation of soybeans and the entire agricultural products so far. The specific situation of cotton is still very small.

Nicosia said that cotton prices were up to more than 90 cents 8 months ago, and the market responded quickly. The cotton planting area in the United States increased rapidly to more than 1 million 400 thousand acres, and US cotton exports were expected to reach 16 million packages.

However, after the market changed suddenly last June, the shipments of the US cotton to China were greatly reduced, and cotton prices also fell rapidly. The Sino US trade war's attack on US cotton exports was real and very serious.

Nicosia said that some progress has been made in the recent Sino US negotiations. China has also promised to buy large quantities of US agricultural products. Although the export volume of US cotton has dropped from 16 million bales to 15 million bales this year, he still believes that US cotton exports will be able to return to 21 million bales by 2021.

Nicosia believes that if the Sino US talks fail, and the two countries continue to impose tariffs on each other, the US cotton industry will continue to be squeezed, and global cotton consumption will continue to decrease, and cotton prices will fall to 55-65 cents.

Conversely, if the negotiations finally reach an agreement, the two countries will abolish the added tariffs. With the largest customer in China, the proportion of US cotton imports to China's imports will increase temporarily and the production of US cotton will also increase in the future.

If Mei cotton can quickly sell Chen cotton, cotton prices will rise rapidly.

If Sino US agreement is reached soon, cotton prices will rise to 95 cents.