2017/18 International Cotton Market Review
Looking back at the quiet past 2017/18, the international cotton market has experienced many factors such as American hurricanes, Indian pests, and Sino-US trade wars. In order to more clearly reflect the trend of the cotton market during this period, it is summarized as follows:
At the end of August 2017, Hurricane Harvey Harvey landed in Texas. As a result of the quality of the cotton, a large number of low-horse cotton appeared in the Texas cotton area. At the beginning of September, Hurricane Emma Irma landed from Florida, weakened in the north, and had limited impact on the southeastern cotton region.
2. India MSP:
In September 2017, India announced the 2017/18 seed cotton minimum purchase price (MSP). The medium and long lengths were Rs. 402/4320/share, which was 4% & 3.8% higher than the previous year. After the stimulus of the Indian election, Kupang raised Rs 500/share on the basis of the government's minimum purchase price (MSP), stimulating India's MCX and ICE cotton futures markets to rise sharply.
3. Indian pests:
In November 2017, during the large-scale listing of new flowers in India, large-scale cotton bollworm insects broke out, and Mabang was particularly affected.
4, US cotton planting intentions:
In March 2018, the US Department of Agriculture released the 2018/19 Intentional Planting Expectation Report. In the new year, the US cotton planting area was 13.469 million acres, an increase of 6.8% over the current year.
5. Sino-US trade war:
In June 2018, the US government announced that it would impose a 25% import tariff on 50 billion US dollars of goods originating in China. The tariff increase measures for about $34 billion of Chinese exports to the US will be implemented on July 6. Additional tariffs on the remaining $16 billion in goods will be further sought for public comment. In order to defend its legitimate rights and interests, the Chinese side decided to impose tariffs on imported goods such as soybeans and other agricultural products, automobiles and aquatic products originating in the United States, in accordance with the "Foreign Trade Law of the People's Republic of China" and other laws and regulations and the basic principles of international law. The tax rate is 25%, which involves the import of US$34 billion from the United States in 2017. The measures will take effect on July 6, 2018. According to the issuance of the "State Council Tariffs and Tariff Commission on the list of tariffs on the United States and Canada," the uncombed cotton under the tax number of 520,10000 is also subject to tariffs.