Two-dollar cotton price affects the global 2012 cotton planting area

Now that two-dollar-a-pound cotton is a thing of the past, its global impact will continue to drive cotton prices, demand for cotton products, and planting intentions for farmers around the world.

Two-and-a-half-pound cotton shocked the entire world. The world's cotton acreage expanded at a record high and demand shrank. However, China has spent the greatest efforts in history to establish reserve cotton stocks.

Allenberg Cotton CEO Joe? Nicosia said that together these factors are creating one of the largest ending stocks in global history, creating huge uncertainty and not knowing what will happen.

At a recent meeting of southern cotton growers and southeastern ginning factories in South Carolina, Nicosia said that there was a serious shortage of cotton last year, so China decided to rebuild its national reserve stock from the very beginning. After the 2011/12 cotton reserve is completed, China will collect and store 15-18 million bales of cotton from the market.

Two-and-a-half pounds of cotton cause fluctuations in demand for cotton products, which is detrimental to farmers' cotton production.

The price of synthetic materials remained stable at about one dollar a pound. The world market responded to the price of one dollar of synthetic materials and was preparing to increase the production of synthetic materials.

Although the demand for cotton around the world seems to be very strong, in reality, China has created artificial artifacts and China is establishing domestic cotton supply. Without China’s crazy purchases, raw cotton demand will reflect low demand for cotton products.

The cotton price for planting time in 2011 has dropped to around US$1.20 per pound, but it is still enough to encourage a significant increase in the global acreage.

Farmers around the world responded to cotton prices and plan to expand 11 million acres of planting area.

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