Cotton market operation under new policy and alternative effect from VSF
2015-05-27
Li Zhenhua, analyst of CCFGroup, gives his report of Cotton market operation under new policy and alternative effect from VSF.
The report is divided into three parts:
First, cotton market features under new policy.
Through analysis on seasonal features of cotton supply, state reserved cotton stocks influences on cotton prices and price gap among different grades of cotton, Mr. Li probes into the operation status of cotton market after the implementation of direct subsidy scheme.
Second, cotton supply & demand and market game.
With the large imports of cotton yarn and the alternative effect among cotton and chemical fibers, Mr. Li analyzes the cotton supply and demand situation domestically and globally. Under the sluggish economy, rigid demand may keep down slightly this season and under the pressure of high stocks, elastic demand may keep low, but demand for high-grade cotton is likely to increase. Above all, till end 2014/15 season, cotton market will basically stay in line with that in last year without sharp rebounds.
Third, alternative effect of cotton and VSF.
Due to sluggish cotton prices, restriction on quotas, low-grade yarn hit by imported yarn and the technical barriers of high-grade yarn, the demand returning from VSF to cotton is limited.
The report is divided into three parts:
First, cotton market features under new policy.
Through analysis on seasonal features of cotton supply, state reserved cotton stocks influences on cotton prices and price gap among different grades of cotton, Mr. Li probes into the operation status of cotton market after the implementation of direct subsidy scheme.
Second, cotton supply & demand and market game.
With the large imports of cotton yarn and the alternative effect among cotton and chemical fibers, Mr. Li analyzes the cotton supply and demand situation domestically and globally. Under the sluggish economy, rigid demand may keep down slightly this season and under the pressure of high stocks, elastic demand may keep low, but demand for high-grade cotton is likely to increase. Above all, till end 2014/15 season, cotton market will basically stay in line with that in last year without sharp rebounds.
Third, alternative effect of cotton and VSF.
Due to sluggish cotton prices, restriction on quotas, low-grade yarn hit by imported yarn and the technical barriers of high-grade yarn, the demand returning from VSF to cotton is limited.