Analysis On The Future Market Of Textile Market Affected By International Cotton Price

The chairman of the Federal Reserve is about to make a statement that international cotton prices may be affected by this. The annual meeting of the global central bank is being held from August 24 to 26. The content of the speech by the chairman of the Federal Reserve on the evening of last Friday has attracted renewed attention. It is expected that the recent position on interest rate adjustment and inflation will be expressed.

In terms of the cotton market, the cotton producing areas in the United States are experiencing a hot wave, and the excellent rate continues to decline. As of August 20, 33% of American cotton had achieved good growth, 3 percentage points less than the previous week. According to foreign news, Punjab, India, was affected by heavy rainfall, and the local cotton was threatened by cotton bollworm pests, which may have a certain impact on the output. The local department is assisting cotton farmers to take measures to deal with it. Considering that India's cotton planting area is at a high level in recent years, the total cotton output is relatively predictable.

In terms of the textile market, according to the data of Bangladesh Textile Mills Association, from January to June 2023, the yarn purchased by domestic knitting and garment factories fell by 31.55% year on year. According to relevant experts in the supply chain, since this year, the production orders placed by traders to suppliers have decreased by 18% compared with the previous year. With the increase in the purchase price of clothing and other products, the demand has been further restricted, and it is expected that the consumer shopping peak will not occur this Christmas holiday.

To sum up, the impact of macro factors on cotton price trend may be strengthened this week, and the recent fluctuation range of international cotton price may expand.

Confidence in the textile market was strengthened, and the domestic cotton price was relatively resistant. Within one month after the meeting of the Political Bureau of the Central Committee in July, relevant ministries and commissions intensively introduced a series of stable growth policies in terms of expanding domestic consumption demand and stabilizing the private economy, focusing on the contradiction of insufficient demand in the current economic operation, releasing clear signals of stable growth, promoting development and strengthening confidence, and boosting the expectations and confidence of market players.

In terms of cotton market, in late August, the Xinjiang research team held by the Central Storage Cotton Information Center learned that although the growth of cotton in northern Xinjiang is relatively slow, the overall growth is good, and the cotton yield is expected to rise.

In the textile market, with the approaching of the traditional peak season, textile mills tend to be active in purchase and sales, and the rate of receiving orders has generally increased. Some enterprises in Jiangsu reported that new orders were basically not received in the early stage until the beginning of September recently, and the yarn price has also been rising slowly recently, not following the trend of cotton price "ups and downs". In the short term, the textile market is gradually showing signs of improvement, and downstream support has been strengthened.