The chief executive of the Iranian cotton Fund said that the country's demand for cotton exceeded 180000 tons per year, and the local production was between 70000 and 80000 tons. Because the profit of planting rice, vegetables and other crops is higher than that of planting cotton, and there is not enough cotton harvesting machinery, the cotton plantations gradually switch to other crops in the country.
The chief executive of the Iranian cotton Fund said that the country's demand for cotton exceeded 180000 tons per year, and the local production was between 70000 and 80000 tons. Because the profit of planting rice, vegetables and other crops is higher than that of planting cotton, and there is not enough cotton harvesting machinery, the cotton plantations gradually switch to other crops in Iran.
Pakistan's finance minister mifta Ismail said that the government would allow Pakistan's textile industry to import cotton to meet its needs as about 1.4 million acres of cotton planting areas in Sindh province were damaged by floods.
American cotton fell sharply because of the strong dollar, but the bad weather in the main production area may still support the market. The recent hawkish remarks of the Federal Reserve stimulated the strengthening of the US dollar and depressed commodity prices. However, weather worries have supported cotton prices. Due to excessive rainfall in the western part of Texas, Pakistan may be affected by floods or reduce production by 500000 tons.
The spot price of domestic cotton has gone up and down. With the listing of new cotton, the domestic cotton supply is sufficient, and the weather in North America is improving, so the expectation of production reduction is weakened; Although the textile peak season is coming, the recovery of downstream demand is not as good as expected. As of August 26, the operating rate of the weaving factory was 35.4%.
At present, cotton supply is sufficient, but downstream demand has not improved significantly. Combined with the strength of the US index, cotton is under pressure. It is expected that cotton prices will fluctuate widely in the short term.
Post time: Sep-06-2022