The Situation In Russia And Ukraine Further Pushes Up The Inflation Pressure, And The Risk Of International Cotton Market Intensifies

The situation in Russia and Ukraine is tense, and the soaring crude oil price has pushed up the inflation pressure, and the Federal Reserve is "on the way" to raise interest rates. In terms of international cotton market, the US Department of agriculture Outlook Forum released the forecast data of cotton supply and demand in 2022 / 23. The global cotton production was 27 million tons, an increase of 3.2% year-on-year; The demand was 27.56 million tons, a year-on-year increase of 1.7%.

With the spring sowing of cotton in the northern hemisphere approaching, four states of the United States held a meeting to discuss the new year's cotton planting plan. Southeast Asian textile market transaction showed a weak trend. In January, Pakistan's cotton yarn export volume decreased by 32% month on month, and textile and clothing export volume decreased by 4.4% month on month. India's domestic demand for summer clothing was delayed due to low temperature weather, and the purchasing power of clothing terminal consumer market was insufficient. The consumer confidence index of the United States fell to a five month low in February.

In the short term, the tense situation in Russia and Ukraine increases the risk of external environment, and the wait-and-see mood is significantly warming, and the international cotton market may be weak.